Cushman & Wakefield (NYSE: CWK) has recently announced the successful completion of a repricing of $1.0 billion of its term loan due in 2030. The repricing has resulted in a 25 basis points reduction in the applicable interest rate, from term SOFR plus 4.00% to term SOFR plus 3.75%. This initiative is expected to produce cash interest expense savings of approximately $6 million annually.
In addition to the repricing, the company elected to prepay $50 million of its term loan due in 2025 during the first quarter. The company's Chief Financial Officer, Neil Johnston, emphasized that these debt transactions underscore the company's strengthened balance sheet and improved free cash flow conversion, which in turn provides increased flexibility to execute on strategic priorities.
Cushman & Wakefield is a leading global commercial real estate services firm with approximately 52,000 employees in nearly 400 offices and 60 countries. In 2023, the firm reported revenue of $9.5 billion across its core services of property, facilities and project management, leasing, capital markets, and valuation and other services. Today the company's shares have moved -3.5% to a price of $10.23. For the full picture, make sure to review Cushman & Wakefield's 8-K report.
