8-KMaterial AgreementsExhibits & Filings

CBRE GROUP, INC. 8-K Report, Material Agreement (Aug 7, 2015)

Filed August 7, 2015For Securities:CBRE

Summary

CBRE Group, Inc. (CBRE) announced on August 6, 2015, the execution of an underwriting agreement for the public offering of $600 million in aggregate principal amount of senior notes due 2026. These notes will bear a fixed interest rate of 4.875% and mature on March 1, 2026. The offering is expected to close on August 13, 2015, subject to standard closing conditions. The primary purpose of this debt issuance is to fund general corporate purposes, specifically allocating a portion of the proceeds towards the previously announced acquisition of Johnson Controls, Inc.'s Global Workplace Solutions (GWS) business. This strategic acquisition is anticipated to close in the late third or early fourth quarter of 2015, signaling a significant expansion for CBRE.

Key Highlights

  • 1CBRE Group, Inc. is raising $600 million through the issuance of senior notes due 2026.
  • 2The senior notes will carry a fixed interest rate of 4.875% per annum.
  • 3The proceeds are earmarked for general corporate purposes, including a portion for the acquisition of Johnson Controls' GWS business.
  • 4The GWS acquisition is expected to close in late Q3 or early Q4 2015.
  • 5The offering is being underwritten by a syndicate of major financial institutions including J.P. Morgan Securities LLC, HSBC Securities (USA) Inc., Merrill Lynch, Pierce, Fenner & Smith Incorporated, Wells Fargo Securities, LLC, and Credit Suisse Securities (USA) LLC.
  • 6The sale of the notes is scheduled to close on August 13, 2015.

Frequently Asked Questions

The primary purpose is to raise capital for general corporate needs, with a significant portion intended to fund the previously announced acquisition of Johnson Controls' Global Workplace Solutions (GWS) business.

The acquisition of the GWS business is anticipated to close in the late third quarter or early fourth quarter of 2015.

The notes have an aggregate principal amount of $600 million, a fixed interest rate of 4.875% per annum, and a maturity date of March 1, 2026. Interest will be paid semi-annually.

The offering is being underwritten by a syndicate of prominent financial institutions, including J.P. Morgan Securities LLC, HSBC Securities (USA) Inc., Merrill Lynch, Pierce, Fenner & Smith Incorporated, Wells Fargo Securities, LLC, and Credit Suisse Securities (USA) LLC.