CBRE Group, Inc. Announces Completion of Debt Refinancing Activities
January 12 2015 - 8:00AM
Business Wire
Company Establishes New $2.6 Billion
Revolving Credit Facility and a $500 Million Tranche A Term
Loan
CBRE Group, Inc. (NYSE:CBG) today announced that it has
refinanced its existing credit facilities by amending and restating
its senior secured credit agreement, which now provides for a
five-year $2.6 billion revolving credit facility and a five-year
$500 million Tranche A term loan facility.
The new revolving credit facility has an initial interest rate
of LIBOR+125 basis points and an initial facility fee of 25 basis
points. The new term loan has an initial interest rate of LIBOR+150
basis points.
Proceeds from the new Tranche A term loan and the $125 million
of recently-issued 5.25% Senior Notes due 2025, along with cash,
were used to pay off Tranche A and Tranche B term loans and the
remaining revolving credit facility balance under the prior credit
facility. These had balances of $434.4 million, $211.2 million, and
$5 million, respectively, as of December 31, 2014. The new
revolving credit facility will have a zero drawn balance at
closing.
The Company’s net debt to adjusted EBITDA ratio stood at 1.5x at
the end of the third quarter of 2014. This credit facility
refinancing, coupled with 10-year or greater term Senior Notes
issued in 2013 and 2014, leaves CBRE with considerable financial
flexibility and limited exposure to potential future increases in
interest rates.
“CBRE’s financial position has never been stronger as a result
of the Company’s continued growth and the prudent structuring of
our balance sheet,” said Jim Groch, the Company’s chief financial
officer and global director of corporate development.
In mid-December, Standard & Poor’s Rating Services increased
CBRE’s corporate rating to Investment Grade (BBB-), with a positive
outlook.
About CBRE Group, Inc.
CBRE Group, Inc. (NYSE:CBG), a Fortune 500 and S&P 500
company headquartered in Los Angeles, is the world’s largest
commercial real estate services and investment firm (in terms of
2013 revenue). The Company has approximately 44,000 employees
(excluding affiliates), and serves real estate owners, investors
and occupiers through approximately 350 offices (excluding
affiliates) worldwide. CBRE offers strategic advice and execution
for property sales and leasing; corporate services; property,
facilities and project management; mortgage banking; appraisal and
valuation; development services; investment management; and
research and consulting. Please visit our website at
www.cbre.com.
“Safe Harbor” Statement Under the Private Securities
Litigation Reform Act of 1995: This press release contains
forward-looking statements within the meaning of Section 27A
of the Securities Act of 1933, as amended, and Section 21E of
the Securities Exchange Act of 1934, as amended. These
forward-looking statements involve known and unknown risks,
uncertainties and other factors discussed in CBRE Group, Inc.’s
filings with the SEC. Any forward-looking statements speak only as
of the date of this press release and, except to the extent
required by applicable securities laws, CBRE Group, Inc. expressly
disclaims any obligation to update or revise any of them to reflect
actual results, any changes in expectations or any change in
events. If CBRE Group, Inc. does update one or more forward-looking
statements, no inference should be drawn that it will make
additional updates with respect to those or other forward-looking
statements. For additional information concerning risks,
uncertainties and other factors that may cause actual results to
differ from those anticipated in the forward-looking statements,
and risks to CBRE Group, Inc.’s business in general, please refer
to its SEC filings, including its Annual Report on Form 10-K for
the fiscal year ended December 31, 2013, and its quarterly
report on Form 10-Q for the quarterly period ended September 30,
2014.
CBRE Group, Inc.Jim GrochChief Financial Officer &Global
Director of Corporate Development215-921-7475orSteve IacoSenior
Managing DirectorInvestor Relations & Corporate
Communications212-984-6535
CBRE Group, Inc. (NASDAQ:CBRE)
Historical Stock Chart
From Mar 2024 to Apr 2024
CBRE Group, Inc. (NASDAQ:CBRE)
Historical Stock Chart
From Apr 2023 to Apr 2024
