CBRE has agreed a new senior unsecured revolving credit facility of $2.8 bn (€2.4 bn) over five years and a five-year $750 mln delayed draw term loan.
Loans under the new revolver bear interest at an initial rate equal to Libor plus 1.0% with a facility fee of 0.15%. Loans under the new term loan bear interest at an initial rate equal to Libor plus 1.15%.
The prior revolver had a current interest rate of Libor plus 0.95% with a facility fee of 0.20%, and the two existing term loans had a weighted average current interest rate of Libor plus 1.22%.
The company used the proceeds from initial drawings on the term loan and revolver, together with cash on hand, to pay off existing term loans, which had a total balance outstanding of $751.9 mln, as of June 30, 2017. The undrawn portions of the new term loan and revolver are available for general corporate purposes.
'Our balance sheet continues to be a distinct advantage for CBRE,' said Jim Groch, the company’s chief financial officer. 'With low leverage and considerable cash and undrawn capacity on our revolving credit facility, we have the liquidity and flexibility to deploy our capital opportunistically to further enhance our position in the marketplace.'
