CBRE has arranged a $1 billion bond sale through its wholly owned subsidiary, CBRE Services, adding long-term debt as the company prepares to fund its acquisition of Onnec Group and meet other corporate needs. The sale is expected to close on November 5, subject to customary conditions.
Key details
- The offering consists of two $500 million tranches:
- 5.650% senior notes due 2032.
- 5.900% senior notes due 2037.
- CBRE plans to use the proceeds for general corporate purposes, including repaying borrowings under its commercial paper program and funding its acquisition of Onnec Group.
- CBRE Services is the issuer; it is a wholly owned subsidiary of CBRE Group.
- The sale had not yet closed when announced. The stated proceeds and closing date are subject to completion of the transaction.
Plain-English implications
CBRE is borrowing $1 billion on a longer-term basis. The proceeds are intended in part to support the Onnec acquisition and repay commercial paper borrowings, while the remainder may be used for other corporate purposes. The announcement does not specify how much will go to each use.