CBRE Group, Inc
) announced that it has priced a public offering of $800 million
worth 5.00% senior notes, maturing in 2023. The company expects
to generate around $785.2 million (after deducting the
underwriters' discounts and estimated offering expenses) of net
proceeds from the offering. Proceeds from the offering are
intended to be used to pay off, in part, the debt outstanding
under its secured senior credit facilities.
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Notably, the notes will be issued by the company's subsidiary,
CBRE Services, Inc. and will be guaranteed by CBRE and the
subsidiaries that guarantee its senior secured credit facility on
a full and unconditional basis. The senior notes, having an
interest rate of 5.00% per annum, are being issued at a price
equal to 100% of the face value.
The offering involves a consortium of renowned banks acting as
the joint book-running managers. These include BofA Merrill Lynch
Bank of America Corporation
), Wells Fargo Securities of
Wells Fargo & Company
), Credit Suisse,
HSBC Holdings plc
), Scotiabank, Barclays Capital and RBS.
This public offering will enable the company to attain financial
flexibility and position it favorably to pursue investment
opportunities and acquisitions, which will go a long way in
enhancing its top-line growth.
Last month, CBRE came up with an impressive fourth quarter 2012
results, after posting disappointing results in the prior
quarter. The company's adjusted earnings of 55 cents per share
surpassed the Zacks Consensus Estimate by 6 cents. Aided by
strong top-line growth in all operating regions, this leading
commercial real estate services firm bounced back to growth track
in the reported quarter.
As of Dec 31, 2012, the company's cash position stood at $1.09
CBRE currently holds a Zacks Rank #3 (Hold).