CBRE is raising $500m (£395m) in the debt markets to fund its acquisition of engineering and facilities maintenance provider J&J Worldwide Services.
The agency is issuing five-year senior notes paying an interest rate of 5.5% and priced at 99.837% of their face value. The net proceeds will be about $495m after underwriters’ discounts and expenses.
Wells Fargo, Bank of America and HSBC are joint bookrunners on the issue.
CBRE agreed to buy J&J, which provides services to the US government, from Arlington Capital Partners for $800m plus an earnout earlier this month.
Bob Sulentic, chair and chief executive at CBRE, said at the time of the deal: “The acquisition is consistent with key elements of our M&A strategy that focus on enhancing our technical services capabilities, increasing revenue resilience and secular growth, and expanding our government client base within Global Workplace Solutions.”
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