LOS ANGELES--(BUSINESS WIRE)--CBRE Group, Inc. (NYSE:CBG) today announced the completion of the offering by CBRE Services, Inc. (“CBRE Services”), its wholly-owned subsidiary, of $125 million in aggregate principal amount of 5.25% Senior Notes due 2025 (the “Tack-On Notes”). The Tack-On Notes have been issued as additional notes under the same indenture as CBRE Services’ $300 million of 5.25% Senior Notes due 2025 that were issued on September 26, 2014. The Tack-On Notes have an interest rate of 5.25% per annum and have been issued at a price equal to 101.5% of their face value plus interest deemed to have accrued from September 26, 2014. The Tack-On Notes are guaranteed on a full and unconditional basis by the Company and the subsidiaries that guarantee the existing 5.25% Senior Notes due 2025.
The Company estimates that the net proceeds from the offering will be approximately $125.3 million, after deducting the underwriter’s discounts and estimated offering expenses and excluding amounts received in respect of interest deemed to have accrued from September 26, 2014. The Company intends to use the net proceeds from such offering of the Tack-On Notes to repay a portion of the term loans outstanding under its senior secured credit facilities.
Credit Suisse acted as the sole book-running manager for the offering of the Notes.
The Tack-On Notes were offered pursuant to an effective shelf registration statement that the Company previously filed with the Securities and Exchange Commission (the “SEC”). The offering of the Tack-On Notes was made only by means of a prospectus supplement and accompanying base prospectus, which may be obtained for free by visiting EDGAR on the SEC’s website at www.sec.gov. Alternatively, copies may be obtained from: Credit Suisse via fax at (212) 325-8057 or by writing to Credit Suisse, Prospectus Department, Eleven Madison Avenue, Level 1B, New York, NY 10010 or by calling (212) 325-2000.
This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of the Notes, in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction.
CBRE Group, Inc. is a leading global commercial real estate services and investment firm based in Los Angeles.
“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 Tack-On Notes. 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.