CBRE Group, Inc. Announces Standard & Poor’s Upgrade of Its Corporate Rating to Investment Grade
December 12 2014 - 4:42PM
Business Wire
CBRE Group, Inc. (NYSE:CBG) today announced that Standard &
Poor’s Rating Services (S&P) has raised CBRE’s corporate rating
to Investment Grade (BBB-), with a positive outlook.
This is the second time in six months that S&P has raised
its rating of CBRE. S&P took its latest action under its
revised methodology for evaluating non-bank financial services
companies. In its most recent analysis (June 2014) of CBRE, S&P
cited more conservative financial management and an increase in
contractual revenue as reasons for its improved credit profile.
CBRE has recently undertaken several financing activities to
strengthen its balance sheet and provide increased financial
flexibility. Since early last year, CBRE has issued approximately
$1.2 billion of senior notes, at 10-year or longer terms and at
interest rates of 5.25% or lower. This includes $125 million of
additional 5.25% senior notes due 2025 issued earlier today at
101.5% of their face value. Proceeds from CBRE’s prior notes
issuances were used to redeem shorter-maturity notes and to prepay
floating-rate debt. Proceeds from today’s notes issuance are
intended to be used to prepay floating-rate term loans.
CBRE also announced in late November that it is in discussions
with its existing credit-facility lenders to increase its revolving
credit facility to up to $2.5 billion ($149.2 million balance at
9/30/14) and refinance its existing Tranche A term loan ($443.7
million balance at 9/30/14) with a new $500 million Tranche A term
loan.
“The S&P upgrade is a milestone for CBRE,” said Jim Groch,
CBRE’s chief financial officer and global director of corporate
development. “We continue to thoughtfully manage our balance sheet
while investing in our people and platform. Combining the
industry’s top entrepreneurial talent with contractual client
relationships and integrated services allows us to create value for
our clients and extend our competitive advantage in the
market.”
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 include, but are not limited to,
statements related to the anticipated use of proceeds from the
issuance of its additional 5.25% senior notes due in 2025. 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 Development215.921.7474orSteve IacoSenior
Managing DirectorInvestor Relations & Corporate
Communications212.984.6535
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