Cushman & Wakefield (NYSE: CWK) has announced the successful completion of a repricing of approximately $1.0 billion of its term loan issued in January 2023, due 2030. The repricing has resulted in a reduction of the applicable interest rate on the term loan by 25 basis points, from term SOFR plus 3.25% to term SOFR plus 3.00%. This change is expected to produce cash interest expense savings of approximately $14 million annually.
In addition to the repricing, the company elected to prepay an additional $45 million of its term loan due 2025 on June 17th, 2024, bringing the aggregate year-to-date debt repayment total to $100 million. These actions demonstrate the company's proactive approach to managing its balance sheet and creating increased financial flexibility while positioning itself for long-term growth.
Cushman & Wakefield reported revenue of $9.5 billion in 2023 across its core services of property, facilities and project management, leasing, capital markets, and valuation and other services. With approximately 52,000 employees in nearly 400 offices and 60 countries, the firm is a leading global commercial real estate services provider.
Neil Johnston, the company's Chief Financial Officer, expressed his satisfaction with the strong market demand and lender support for the term loan repricing. These financial maneuvers reflect the company's commitment to strategic priorities and its ability to garner support from the financial market.
The company's actions in repricing the term loan and making significant debt repayments demonstrate a proactive approach to managing its financial position while leveraging market opportunities to optimize its balance sheet. The market has reacted to these announcements by moving the company's shares 1.9% to a price of $10.68. For more information, read the company's full 8-K submission here.
