LOS ANGELES--(BUSINESS WIRE)--CBRE Group, Inc. (NYSE:CBG) today announced that it has closed on a new $400 million term-loan facility. The new facility includes a $270 million term loan that matures in five years and has an initial interest rate of LIBOR+115 basis points, or approximately 1.35% currently, and a $130 million term loan that matures in seven years and has an initial interest rate of LIBOR+160 basis points, or approximately 1.80% currently. The $270 million term loan is pre-payable at any time without penalty, and the $130 million term loan is pre-payable at any time without penalty after September 3, 2017.
The new term loan facility follows the completion of a $600 million investment grade senior notes offering in August. The senior notes mature in 2026 and have an interest rate of 4.875%.
“We have now concluded our financing activities for the acquisition of Global Workplace Solutions, which we closed on Tuesday,” said Jim Groch, CBRE’s chief financial officer. “We were able to up-size both the notes offering and bank term loans at attractive pricing due to strong demand. These financings equate to approximately two-thirds of the purchase price, and we continue to operate with modest leverage, very substantial liquidity and a high degree of flexibility to execute our strategy.”
Moody’s Investors Service and Standard & Poor’s Rating Services rate CBRE’s corporate debt at Investment Grade (Baa3/BBB), with a stable 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 2014 revenue). The Company has more than 70,000 employees (excluding affiliates), and serves real estate owners, investors and occupiers through more than 400 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.