Commercial real estate services firm Cushman & Wakefield completed a repricing of $1 billion of its term loan due in 2030. The repricing reduces the applicable interest rate on the term loan, which was issued in August 2023, by 25 basis points from term SOFR plus 4% to term SOFR plus 3.75%. According to an 8K filed with the SEC, JPMorgan Chase is the administrative agent for the term loan.
There are no changes to the maturity of the Term Loan following this repricing and all other terms are substantially unchanged. Additionally, the company announced that during the first quarter it elected to prepay $50 million of its term loan due in 2025. The company estimates that the repricing and optional prepayment of debt will produce cash interest expense savings of approximately $6 million annually.
“These recent successful debt transactions highlight our strengthened balance sheet and improved free cash flow conversion, creating increased flexibility as we continue to execute on our strategic priorities,” Neil Johnston, CFO of Cushman & Wakefield, said. “We were very pleased with the strong market demand and lender support for our term loan repricing.”
