CBRE Prices $1B Senior Notes Offering, Plans Debt Reduction From Proceeds

CBRE Group Inc CBRE disclosed the pricing of a $1 billion senior notes offering due in 2034.

The notes, priced at 98.174% of their face value, have an interest rate of 5.950% per annum.

CBRE expects to settle the note on June 23, 2023, upon satisfactory customary closing conditions.

The company projects net proceeds of around $973 million from the offering after deducting the underwriters' discounts and estimated offering expenses. 

CBRE plans to use the proceeds for outstanding debt repayments and other corporate purposes.

In April, CBRE reported Q1 2023 revenues of $7.41 billion, beating the consensus of $7.09 billion and core EPS of $0.92, surpassing the consensus of $0.86. 

As of March 31, 2023, CBRE had total liquidity of around $3.7 billion, comprising around $1.2 billion of cash and approximately $2.5 billion under its revolving credit facilities, net of any outstanding letters of credit.

The net leverage ratio was 0.56x as of March 31, 2023, vs. the company's primary debt covenant of 4.25x.

Price Action: CBRE shares closed lower by 1.12% at $76.94 on Tuesday.