DALLAS - CBRE Group, Inc. (NYSE:CBRE), the world's largest commercial real estate services and investment firm, has announced the pricing of a $500 million offering of senior notes. The notes, due in 2029, carry an annual interest rate of 5.500% and are being issued at a price slightly below face value, at 99.837%. The settlement of these notes is expected to occur on February 23, 2024, contingent upon customary closing conditions.
The issuance is being managed by CBRE Services, Inc., a fully owned subsidiary of CBRE Group, Inc., with the parent company providing a full and unconditional guarantee. The net proceeds from the offering, estimated at approximately $495 million after underwriting discounts and offering expenses, are intended to partially finance the acquisition of J&J Worldwide Services.
Joint book-running managers for the transaction are Wells Fargo Securities, LLC, BofA Securities, Inc., and HSBC Securities (USA) Inc. The offering is made through a prospectus supplement and an accompanying base prospectus, available via the SEC's EDGAR service or through direct contact with the managing firms.
This press release does not constitute an offer to sell or a solicitation of an offer to buy the notes in any jurisdiction where such action would be unlawful prior to registration or qualification under the securities laws of such jurisdiction.
CBRE Group, Inc., headquartered in Dallas, continues to lead the commercial real estate market, evidenced by its position in the Fortune 500 and S&P 500 indices. The company's forward-looking statements regarding the note offering and anticipated use of proceeds are subject to risks and uncertainties, which are detailed in its filings with the SEC, including its Annual Report on Form 10-K for the fiscal year ended December 31, 2023.
This news article is based on a press release statement from CBRE Group, Inc. and does not include any additional analysis or data not presented in the release.
InvestingPro Insights
As CBRE Group, Inc. (NYSE:CBRE) positions itself for strategic growth with the issuance of senior notes for the acquisition of J&J Worldwide Services, insights from InvestingPro show a company that is actively managed and financially robust. A key InvestingPro Tip indicates that CBRE's management has been aggressively buying back shares, a sign of confidence in the company's value and future performance. Additionally, analysts have revised their earnings upwards for the upcoming period, suggesting optimism about CBRE's financial prospects.
InvestingPro Data further illuminates the company's financial health and market position. CBRE's market capitalization stands at a solid 27.06 billion USD, reflecting its significant presence in the industry. The P/E ratio, a measure of the company's current share price relative to its per-share earnings, is 28.48, with a slight adjustment in the last twelve months as of Q4 2023 to 28.05. Moreover, with a price to book ratio of 3.27, investors can gauge the company's valuation in relation to its net asset value. These metrics, combined with a revenue growth of 3.64% in the last twelve months as of Q4 2023, and a notable 9.38% return over the last week, underline CBRE's strong market performance and potential for continued growth.
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