Colliers International Group established a structured accounts receivable facility to further diversify its capital structure.
The A/R facility has committed availability of $125 million and includes selected U.S. and Canadian trade accounts receivable, with an initial term of 364 days. Initial proceeds from the A/R facility, expected later this month, will be used to repay outstanding indebtedness under Colliers’ multi-currency revolving credit facility.
Colliers is the servicer under the A/R facility and clients will be unaffected. The A/R facility will reduce interest costs and reported financial leverage.
Mizuho Bank acted as agent, managing agent and committed investor for the transaction. Sidley Austin and Torys acted as U.S. and Canadian legal counsel, respectively, for Colliers.
“We believe the A/R facility is a very complementary addition to our existing capital structure, providing us with an attractive low cost, off-balance sheet funding source,” said Christian Mayer, Colliers senior vice president, Finance & Treasurer.
“While the initial term of the A/R facility is the typical 364-day duration, we expect this to be a component of our capital structure over the long term,” said John B. Friedrichsen, Colliers CFO. “The A/R facility together with our recently extended multi-currency revolving credit facility due in 2024 and our 2.23% euro-denominated senior notes due in 2028, provide us highly cost-effective capital to continue funding our operations and strategic growth objectives around the world and in each of our service lines.”
