Cushman & Wakefield has secured a new $1bn (£790m) loan facility.
The loan has been secured until 31 January 2030 at a rate of term SOFR (secured overnight financing rate) plus 4%.
The new facility, coupled with a placement to raise $400m, has been used to refinance $1.4bn of debt under the firm’s circa $1.6bn of financing, due to mature on 21 August 2025. Cushman said the remaining debt would be paid down using on-hand cash and cash equivalents.
Following the refinancing the company’s blended annual interest rate will be approximately 8%.
Chief executive Michelle MacKay said the refinancing reinforced the company’s commitment to enhancing its “financial flexibility” and maintaining its balance sheet strength.
“By extending our debt maturity profile and with our $1.6bn 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,” she said.
Earlier this month, while delivering her first set of financial results for Cushman, MacKay said she was focused on the significantly improving and building on the firm’s “solid core” and would leave “no stone unturned in making sure that we move expeditiously and decisively to grow this company and build confidence both in ourselves and also with our partners and key stakeholders”.
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