CB Richard Ellis to offer $350 million in notes to repay debt
By APTuesday, October 5, 2010
CB Richard Ellis launches $350M notes offering
LOS ANGELES — CB Richard Ellis Group Inc. says it will launch a $350 million notes offering in a private placement.
The company said the notes will be issued by its subsidiary, CB Richard Ellis Services Inc., and guaranteed by the company.
The notes will have an annual interest rate of 6.625 percent and are being issued at a price equal to 100 percent of their face value.
CB Richard Ellis said it intends to use the estimated $342.3 million proceeds from the offering to repay a portion of its outstanding debt.
The company also said it will refinance about $1.5 billion of its debt, using about $500 million cash on hand, nearly $350 million from the notes offering and up to $650 million under new secured credit facilities.
Shares of the company rose 38 cents, roughly 2 percent, to $18.07 in afternoon trading.
