8-KMaterial AgreementsFinancial EventsExhibits & Filings

CBRE GROUP, INC. 8-K Report, Material Agreement (Nov 17, 2010)

Filed November 17, 2010For Securities:CBRE

Summary

CBRE Group, Inc. (CBRE) filed an 8-K on November 17, 2010, reporting on the execution of a new $1.35 billion senior secured credit facility on November 10, 2010. This facility, with Credit Suisse AG as the administrative agent, consists of a $350 million Tranche A term loan, a $300 million Tranche B term loan, and a $700 million revolving credit facility. The company immediately drew down the full amounts of the Tranche A and Tranche B term loans, as well as $20 million in swingline loans under the revolving facility, to repay all outstanding amounts under its previous credit agreement, which was terminated on November 11, 2010. In addition to the new credit facility, CBRE also entered into two supplemental indentures. These indentures ensure that two new subsidiaries, CBRE Government Services, LLC and CBRE-Profi Acquisition Corp., fully guarantee the company's obligations under its 6.625% Senior Notes due 2020 and its 11.625% Senior Subordinated Notes due 2017. The new credit agreement introduces a tiered interest rate and fee structure based on the company's leverage ratio, with provisions for mandatory prepayments tied to asset sales, debt issuance, and excess cash flow. The credit facility is secured by a pledge of capital stock of the U.S. Borrower and its subsidiaries.

Key Highlights

  • 1CBRE secured a new $1.35 billion senior secured credit facility with Credit Suisse AG.
  • 2The facility includes $350 million Tranche A term loan, $300 million Tranche B term loan, and a $700 million revolving credit facility.
  • 3The company immediately drew $650 million in term loans and $20 million in swingline loans to refinance existing debt.
  • 4The previous credit agreement was fully repaid and terminated.
  • 5Two new subsidiaries (CBRE Government Services, LLC and CBRE-Profi Acquisition Corp.) were added as guarantors for the 6.625% Senior Notes due 2020 and 11.625% Senior Subordinated Notes due 2017.
  • 6Interest rates and fees under the new credit facility are variable, based on the company's leverage ratio.
  • 7The new credit facility is secured by a pledge of capital stock of U.S. borrowers and certain subsidiaries.

Frequently Asked Questions

CBRE Group, Inc. has secured a new senior secured credit facility totaling up to $1.35 billion.

The facility is comprised of a $350 million senior secured tranche A term loan, a $300 million senior secured tranche B term loan, and a senior secured revolving credit facility of up to $700 million.

On November 10, 2010, the company borrowed $350 million under the tranche A term loan, $300 million under the tranche B term loan, and $20 million in swingline loans. These proceeds were used to repay all outstanding amounts under CBRE's previous credit agreement, which was subsequently terminated.

The First and Second Supplemental Indentures add two new subsidiaries, CBRE Government Services, LLC and CBRE-Profi Acquisition Corp., as full and unconditional guarantors for the company's 6.625% Senior Notes due 2020 and 11.625% Senior Subordinated Notes due 2017, respectively.