CBRE Group, Inc. Announces Pricing of $500 Million of 2.500% Senior Notes Due 2031

Rhea-AI Summary

CBRE Group, Inc. (NYSE:CBRE) has priced $500 million in 2.500% Senior Notes due 2031, issued by its subsidiary CBRE Services, Inc. The Notes, sold at 98.451% of face value, are set to settle on March 18, 2021, pending customary conditions. The estimated net proceeds of approximately $487 million will be utilized for general corporate purposes. Goldman Sachs & Co. LLC and Wells Fargo Securities, LLC are joint book-running managers for this offering, conducted under an effective SEC shelf registration statement.

Positive

• Successful pricing of $500 million Senior Notes indicates strong market interest.
• Estimated net proceeds of approximately $487 million will provide liquidity for corporate purposes.

Negative

• Notes issued at a discount (98.451% of face value) may indicate lower market confidence.

CBRE Group, Inc. (NYSE:CBRE) today announced the pricing of the offering of $500 million in aggregate principal amount of 2.500% Senior Notes due 2031 (the “Notes”). The Notes will have an interest rate of 2.500% per annum and are being issued at a price equal to 98.451% of their face value. The company’s wholly owned subsidiary, CBRE Services, Inc., will issue the Notes, which are guaranteed on a full and unconditional basis by the company and the subsidiaries that guarantee the company’s senior credit facility. The Notes are expected to settle on March 18, 2021, subject to the satisfaction of customary closing conditions.

The company estimates that the net proceeds from the offering will be approximately $487 million, after deducting the underwriters’ discounts and estimated offering expenses. The company intends to use the net proceeds from this offering for general corporate purposes.

Goldman Sachs & Co. LLC and Wells Fargo Securities, LLC are acting as joint book-running managers for the offering of the Notes.

The Notes are being offered pursuant to an effective shelf registration statement that the company previously filed with the Securities and Exchange Commission (the “SEC”). The offering of the Notes will be made only by means of a prospectus supplement and accompanying base prospectus, which may be obtained for free by visiting EDGAR on the SEC’s website at www.sec.gov. Alternatively, copies may be obtained by contacting Goldman Sachs & Co. LLC, Prospectus Department, 200 West Street, New York, NY 10282, telephone: (866) 471-2526 or by emailing prospectus-ny@ny.email.gs.com; or contacting Wells Fargo Securities, LLC, 608 2nd Avenue South, Suite 1000 Minneapolis, MN 55402 Attn: WFS Customer Service, telephone: (800) 645-3751 or by emailing wfscustomerservice@wellsfargo.com.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of the Notes, in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction.

About CBRE Group, Inc.

CBRE Group, Inc. (NYSE:CBRE), headquartered in Dallas, is a global commercial real estate services and investment firm.

“Safe Harbor” Statement Under the Private Securities Litigation Reform Act of 1995:
This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements include, but are not limited to, statements related to the offering of the Notes and the anticipated use of proceeds therefrom. These forward-looking statements involve known and unknown risks, uncertainties and other factors discussed in CBRE Group, Inc.’s filings with the SEC. Any forward-looking statements speak only as of the date of this press release and, except to the extent required by applicable securities laws, CBRE Group, Inc. expressly disclaims any obligation to update or revise any of them to reflect actual results, any changes in expectations or any change in events. If CBRE Group, Inc. does update one or more forward-looking statements, no inference should be drawn that it will make additional updates with respect to those or other forward-looking statements. For additional information concerning risks, uncertainties and other factors that may cause actual results to differ from those anticipated in the forward-looking statements, and risks to CBRE Group, Inc.’s business in general, please refer to its SEC filings, including its Annual Report on Form 10-K for the fiscal year ended December 31, 2020.

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FAQ

What are the details of the CBRE Senior Notes offering?

CBRE Group announced $500 million in 2.500% Senior Notes due 2031, issued at 98.451% of face value.

When is the settlement date for CBRE's Senior Notes?

The settlement date for the Senior Notes is set for March 18, 2021.

What will CBRE do with the proceeds from the Senior Notes?

The proceeds of approximately $487 million will be used for general corporate purposes.

Who manages the offering of CBRE's Senior Notes?

Goldman Sachs & Co. LLC and Wells Fargo Securities, LLC are acting as joint book-running managers.

What is the interest rate on CBRE's Senior Notes?

The interest rate on the Senior Notes is 2.500% per annum.