01—Abstract
Summary
Summary of the 8-K filed December 3, 2024. Cited figures are marked; the original filing is the authoritative source.
CBRE Group, Inc. (CBRE), through its wholly-owned subsidiary CBRE Services, Inc., has established a commercial paper program allowing for the issuance of up to $3.5 billiona in short-term debt.
This program, effective December 2, 2024, enables the subsidiary to issue unsecured and unsubordinated commercial paper notes with maturities of up to 397 days. The parent company, CBRE Group, Inc., is providing a full and unconditional guarantee for these notes. This initiative provides CBRE with flexible access to short-term funding for general corporate purposes.
While no notes have been issued yet, the program is backed by an existing revolving credit facility. Investors should note that this debt is unsecured and ranks pari passu with other unsecured and unsubordinated debt of both the issuer and the guarantor. The issuance falls under an exemption from registration under the Securities Act of 1933.
02—Key points
Key Highlights
- CBRE's subsidiary, CBRE Services, Inc., has established a new commercial paper program.
- The program allows for the issuance of up to $3.5 billion in short-term debt.
- CBRE Group, Inc. is providing a full and unconditional guarantee for the commercial paper notes.
- Proceeds from the commercial paper program are intended for general corporate purposes.
- The notes will have maturities of up to 397 days.
- The program is backstopped by available capacity under the subsidiary's unsecured revolving credit facility.
- No commercial paper has been issued under the program as of the filing date.
03—Questions
Frequently Asked Questions
What is the purpose of the commercial paper program?
The commercial paper program is established to provide CBRE's subsidiary with a flexible source of short-term funding for general corporate purposes.
What is the maximum amount CBRE can raise through this program?
CBRE Services, Inc. can issue up to $3.5 billion in commercial paper notes under this program.
Who guarantees the payment of these commercial paper notes?
CBRE Group, Inc., the parent company, provides a full and unconditional guarantee for the payment of the commercial paper notes issued by its subsidiary.
Are the commercial paper notes secured debt?
No, the commercial paper notes are unsecured and unsubordinated. They rank pari passu (equally) with other unsecured and unsubordinated indebtedness of the issuer and the parent company.
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