Real estate services firm Cushman & Wakefield closed a previously announced new $1 billion term loan facility with a maturity of Jan. 31, 2030, which will bear interest at a rate of term SOFR plus 4% with a 0.5% term SOFR floor. According to an 8K filed with the SEC, JPMorgan Chase is the administrative and collateral agent for the facility.
In connection with the new term loan, Cushman & Wakefield also closed a previously announced offering of $400 million of 8.875% senior secured notes due 2031.
Cushman & Wakefield used the net proceeds from the offering and new term loan facility to refinance $1.4 billion of existing indebtedness outstanding under the company’s $1.593 billion senior secured term loan maturing Aug. 21, 2025. In advance of the maturity date, the company expects to repay the remaining $193 million of the senior secured term loan using on-hand cash and cash equivalents.
Following this refinancing, the company’s blended annual interest rate will be approximately 8% on the company’s total indebtedness.
“The success of this refinancing transaction reinforces our commitment to enhancing our financial flexibility and maintaining our balance sheet strength,” Michelle MacKay, CEO of Cushman & Wakefield, said. “By extending our debt maturity profile and with our $1.6 billion of available liquidity as of June 30, 2023, we believe that we are well positioned to execute on our strategic priorities and allocate capital into growth sectors as the market recovers.”
“We appreciate the strong support from our investors, lenders and banking partners, which we believe reflects confidence in our industry’s long-term fundamentals, our resilient business model and our strong team,” Neil Johnston, CFO of Cushman & Wakefield, said.
