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CBRE Services $800M high-yield bonds price at par to yield 5%; terms

CBRE Services has placed an $800 million offering of 10-year (non-call five) senior notes via a Bank of America-helmed bookrunner line up that includes J.P. Morgan, Credit Suisse, Wells Fargo, HSBC, Scotia, Barclays, and RBS. The bonds priced at par to yield 5%, the tight end of 5.125% guidance. SEC-registration filings indicated the issue would be sized at $500 million, though the bonds were originally announced as an $800 million offering. The transaction was initially flagged last week by the commercial-real-estate-services giant alongside a loan market refinancing and capital raise for general corporate purposes. The bonds swap to a floating-rate equivalent of roughly L+285, compared with the coordinated $215 million eight-year B term loan that’s in the market with talk at L+325, with no floor and a 99.5 offer price. The company is also raising a $1 billion revolver and $500 million TLA, both five years. Terms:

 

Issuer CBRE Services
Ratings B+/Ba1
Amount $800 million
Issue senior notes (SEC-registration)
Coupon 5%
Price 100
Yield 5%
Spread T+294
FRN eq. L+285
Maturity Mar. 15, 2023
Call nc5
Trade Mar. 11, 2013
Settle Mar. 14, 2013 (T+3)
Jt Books BAML, JPM, CS, WFS, HSBC, Scotia, Barc, RBS
Co’s. MUFJ, Comerica, RayJames, JMP
Px talk 5.125% area
Notes Eq claw 35% at 105 till Mar 2016. Call at 102.5 2018, 101.667 2019, 100.833 2020 then par

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