Debt

12 Months Ended

Dec. 31, 2022

Debt Disclosure [Abstract]

Debt

10.     DEBT

Debt is composed of the following obligations.

	December 31,
($ in millions)	2022		2021
Short-term debt:
Local overdraft facilities	$	21.2	9.2
Other short-term borrowings	143.0		138.7
Long-term senior notes, 4.4%, face amount of $275.0, due November 2022, net of debt issuance costs of $— and $0.3	—		274.7
Total short-term debt	$	164.2	422.6
Credit facility, net of debt issuance costs of $11.2 and $11.8	1,213.8		138.2
Long-term senior notes, 1.96%, face amount of €175.0, due June 2027, net of debt issuance costs of $0.5 and $0.6	186.5		197.9
Long-term senior notes, 2.21%, face amount of €175.0, due June 2029, net of debt issuance costs of $0.7 and $0.8	186.3		197.7
Total debt	$	1,750.8	956.4

Credit Facilities

On June 16, 2022, we executed Amendment No. 3 ("Amendment No. 3") to the Second Amended and Restated Multicurrency Credit Agreement dated as of June 21, 2016 (as amended, the "Credit Agreement") with a syndicate of lenders. The features of the Credit Agreement, as amended, provide for (i) Greenhouse Gas Emissions KPI to align with the World Green Building Council ("WGBC") Commitment to reach net zero by 2030 and (ii) incorporates the Adjusted Term Secured Overnight Financing Rate ("SOFR") successor rates for USD and other currency borrowings. On August 31, 2022, we executed Amendment No. 4 ("Amendment No. 4") to the Credit Agreement which increased the borrowing capacity from $2.75 billion to $3.35 billion. The maturity date of April 14, 2026 and covenants were unchanged by the amendments.

Pricing on the unsecured revolving credit facility (the "Facility") ranges from Adjusted Term SOFR plus 0.875% to 1.35%, with pricing as of December 31, 2022 at Adjusted Term SOFR plus 0.99%. In addition to outstanding borrowings under the Facility presented in the above table, we had outstanding letters of credit under the Facility of $0.4 million and $0.7 million and as of December 31, 2022 and December 31, 2021, respectively.

In November 2022, we entered into an uncommitted credit agreement (the "Uncommitted Facility"), which allows for discretionary short-term liquidity of up to $400.0 million. Interest and fees are set at the time of utilization and calculated on a 360-day basis. Between quarter-end dates, we intend to use the proceeds to reduce indebtedness under the Facility at a lower interest rate. As such, the Uncommitted Facility has no outstanding balance as of December 31, 2022.

The following table provides additional information on our Facility and Uncommitted Facility, collectively.

	Year Ended December 31,
($ in millions)	2022			2021
Average outstanding borrowings	$	1,399.1		432.0
Average effective interest rate	2.9		%	0.9	%

We will continue to use the Facility for, but not limited to, business acquisitions, working capital needs (including payment of accrued incentive compensation), co-investment activities, share repurchases and capital expenditures.

Short-Term and Long-Term Debt

In addition to our credit facilities, we have the capacity to borrow up to an additional $52.3 million under local overdraft facilities. Amounts outstanding are presented in the debt table above.

During 2022 we redeemed all of our outstanding 4.4% Senior Notes due November 2022 (the "Notes"). The aggregate outstanding principal amount of the Notes was $275.0 million. The redemption price for the Notes was equal to 100% of the principal amount of the Notes redeemed, plus accrued and unpaid interest.

As of December 31, 2022, our issuer and senior unsecured ratings were investment grade: Baa1 from Moody’s Investors Service, Inc. and BBB+ from Standard & Poor’s Ratings Services.

Covenants

Our Facility and senior notes are subject to customary financial and other covenants, including cash interest coverage ratios and leverage ratios, as well as event of default conditions. We remained in compliance with all covenants as of December 31, 2022.

Warehouse Facilities

	December 31, 2022			December 31, 2021
($ in millions)	Outstanding Balance		Maximum Capacity	Outstanding Balance	Maximum Capacity
Warehouse facilities:
BSBY plus 1.30%, expires September 18, 2023(1)	$	215.7	700.0	516.9	700.0
SOFR plus 1.30%, expires September 15, 2023(2)	132.3		1,200.0	74.7	1,200.0
LIBOR plus 1.30%, expired August 27, 2022	—		—	192.8	300.0
SOFR plus 1.40%, expires July 28, 2023(3)	9.0		400.0	—	400.0
Fannie Mae ASAP(4) program, SOFR plus 1.25%	99.2		n/a	12.5	n/a
Gross warehouse facilities	456.2		2,300.0	796.9	2,600.0
Debt issuance costs	(0.9)		n/a	(1.2)	n/a
Total warehouse facilities	$	455.3	2,300.0	795.7	2,600.0

(1) In 2022, JLL extended the Warehouse facility; previously, the facility had a maturity date of September 19, 2022.

(2) In 2022, JLL extended the Warehouse facility and amended the interest rate; previously, the facility had a maturity date of September 16, 2022 and an interest rate of LIBOR plus 1.30%.

(3) In 2022, JLL extended the Warehouse facility and amended the interest rate; previously the facility had a maturity date of July 30, 2022 and an interest rate of LIBOR plus 1.60%.

(4) As Soon As Pooled ("ASAP") funding program.

We have lines of credit established for the sole purpose of funding our Warehouse receivables. These lines of credit exist with financial institutions and are secured by the related warehouse receivables. Pursuant to these facilities, we are required to comply with certain financial covenants regarding (i) minimum net worth, (ii) minimum servicing-related loans and (iii) minimum adjusted leverage ratios. We remained in compliance with all covenants under our facilities as of December 31, 2022.

As a supplement to our lines of credit, we have an uncommitted facility with Fannie Mae under its As Soon As Pooled ("ASAP") funding program. After origination, we sell certain warehouse receivables to Fannie Mae; the proceeds are used to repay the original lines of credit used to fund the loan. The ASAP funding program requires us to repurchase these loans, generally within 45 days, followed by an immediate, ultimate, sale back to Fannie Mae. The difference between the price paid upon the original sale to Fannie Mae and the ultimate sale reflects borrowing costs.