CBRE Refinances DebtThursday, March 28, 2013
CBRE Group Inc. said late Thursday it had refinanced its existing credit facilities and will pay off some senior notes, which it said would lower debt levels by nearly $500 million.
The refinancing, which follows the sale of $800 million in 10-year senior unsecured notes earlier this month, enables the Los Angeles commercial real estate services company to replace the majority of its remaining debt with new debt at lower interest rates, shift certain indebtedness from a floating rate to a fixed rate and extend maturity dates, CBRE said after the markets closed.
“Our refinancing activities have positioned CBRE for further growth,” Chief Executive Robert Sulentic said in a statement. “Our balance sheet is well structured to support our growth initiatives while also providing us the flexibility to navigate a continued uncertain market environment.”
As part of the refinance, CBRE will pay down $450 million in 11 percent senior subordinated notes in June. Its annual interest expense will be about $50 million lower than it was last year. In addition, the borrowing capacity of its 5-year, revolving credit facility has been increased from $700 million to $1.2 billion.
Shares earlier closed up 14 cents, or less than 1 percent, to $25.25 on the New York Stock Exchange.