Summary
CBRE Group, Inc. (CBRE) filed an 8-K on August 13, 2015, to report the issuance of $600 million in aggregate principal amount of 4.875% Senior Notes due 2026 by its wholly-owned subsidiary, CBRE Services, Inc. These notes are guaranteed on a full and unconditional basis by CBRE Group, Inc. and certain other subsidiaries. The primary purpose of this filing is to disclose the material definitive agreement related to this debt issuance. This action indicates that CBRE is raising substantial capital through debt, which could be for general corporate purposes, acquisitions, or refinancing existing debt. Investors should note the interest rate of 4.875% and the maturity date of March 1, 2026. The notes are senior unsecured obligations, ranking equally with existing senior indebtedness but subordinate to secured debt. The indenture includes covenants that restrict the company's ability to create certain liens, enter into sale/leaseback transactions, and undertake mergers or consolidations, subject to specified qualifications and exceptions.
Key Highlights
- 1CBRE Group, Inc. subsidiary, CBRE Services, Inc., issued $600 million in 4.875% Senior Notes due 2026.
- 2The notes are guaranteed by CBRE Group, Inc. and certain other subsidiaries.
- 3The issuance is governed by an Indenture, with a Fourth Supplemental Indenture dated August 13, 2015.
- 4The notes mature on March 1, 2026, with semi-annual interest payments starting March 1, 2016.
- 5Early redemption options exist before December 1, 2025, at a premium based on the adjusted treasury rate, and at par from December 1, 2025 onwards.
- 6A change of control triggering event requires CBRE to offer to repurchase the notes at 101% of principal.
- 7The notes are senior unsecured obligations, pari passu with other senior debt, but effectively subordinated to secured debt and structurally subordinated to non-guarantor subsidiaries.