S&P rates CBRE loans BBB-

Standard & Poor’s said it assigned a BBB- rating to CBRE Services Inc.’s $2.6 billion senior secured revolving credit facility and $500 million tranche A term loan facility.

CBRE used cash and the proceeds from these offerings, along with the proceeds from a recent $125 million add-on to its unsecured notes due 2025, to repay and terminate its previous revolving credit facility and two senior secured term loans, which collectively had about $650 million of debt outstanding, S&P said.

As a result of this pay down and other actions, the company’s leverage has decreased, the agency said.

The transaction also extends the maturities of the company’s debt and effectively replaces $125 million of secured debt with an equal amount of unsecured debt, improving CBRE’s financial flexibility and leaving its unsecured creditors with slightly less secured debt ahead of that debt, S&P said.

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