redirect pin user minus plus fax mobile-phone office-phone data envelope globe outlook retail close line-arrow-down solid-triangle-down facebook globe2 google hamburger line-arrow-left solid-triangle-left linkedin wechat play-btn line-arrow-right arrow-right solid-triangle-right search twitter line-arrow-up solid-triangle-up calendar globe-americas globe-apac globe-emea external-link music picture paper pictures play gallery download rss-feed vcard account-loading

Press Release Details

View all news

CB Richard Ellis Group, Inc. Announces Completion of Bank Term-Debt Refinancing, Establishment of a New $700 Million Revolving Credit Facility and an Additional $800 Million Accordion Facility

November 11, 2010
Company Estimates Approximately $40 Million of Annualized Borrowing Cost Savings

LOS ANGELES, Nov 11, 2010 (BUSINESS WIRE) -- CB Richard Ellis Group, Inc. (NYSE:CBG) today announced that it has completed the refinancing of its credit agreement. As part of its refinancing, CB Richard Ellis:

  • repaid approximately $460 million of existing debt with cash;
  • refinanced $650 million of existing term loans;
  • established a new $700 million revolving credit facility (with less than $25 million initially drawn), and
  • secured a reusable $800 million accordion facility, which can be further expanded, subject to certain conditions.

The initial interest rate on the $700 million revolver and the five-year $350 million term A loan is 2.25% over LIBOR or approximately 2.5% (with 30-day LIBOR at approximately 0.25%). The rate is subject to a leverage-based pricing grid. The $300 million term B loan, which matures in six years, is set at 3.25% over LIBOR or approximately 3.5% currently. The Company believes the term B loan has the lowest interest rate achieved in the market this year.

Since January, 2009, CB Richard Ellis has reduced its aggregate net debt by approximately 40% or $775 million. Today's actions will save the Company annualized run-rate borrowing costs of approximately $40 million based on the reduced debt and the lower interest rates on the term loans, assuming no increase in the LIBOR rate.

"We are extremely pleased with the results of our refinancing and appreciate the support of our lenders," said Brett White, chief executive officer of CB Richard Ellis. "The opportunity to significantly reduce our borrowing costs while materially increasing flexibility will enhance our capacity to make strategic investments in our people and platform."

The refinancing was led by Credit Suisse, Bank of America Merrill Lynch and HSBC. Credit Suisse acted as the Administrative Agent; Bank of America Merrill Lynch and Wells Fargo acted as Syndication Agents; Bank of Nova Scotia and Barclays acted as Documentation Agents, and RBS acted as a Senior Managing Agent.

About CB Richard Ellis

CB Richard Ellis Group, Inc. (NYSE:CBG), a Fortune 500 and S&P 500 company headquartered in Los Angeles, is the world's largest commercial real estate services firm (in terms of 2009 revenue). The Company has approximately 29,000 employees (excluding affiliates), and serves real estate owners, investors and occupiers through more than 300 offices (excluding affiliates) worldwide. CB Richard Ellis offers strategic advice and execution for property sales and leasing; corporate services; property, facilities and project management; mortgage banking; appraisal and valuation; development services; investment management; and research and consulting. Please visit our Web site at www.cbre.com.

"Safe Harbor" Statement Under the Private Securities Litigation Reform Act of 1995: This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements include, but are not limited to, statements related to the new credit facilities and borrowing costs. These forward-looking statements involve known and unknown risks, uncertainties and other factors discussed in CB Richard Ellis Group, Inc.'s filings with the Securities and Exchange Commission (the "SEC"). Any forward-looking statements speak only as of the date of this press release and, except to the extent required by applicable securities laws, CB Richard Ellis Group, Inc. expressly disclaims any obligation to update or revise any of them to reflect actual results, any changes in expectations or any change in events. If CB Richard Ellis Group, Inc. does update one or more forward-looking statements, no inference should be drawn that it will make additional updates with respect to those or other forward-looking statements. For additional information concerning risks, uncertainties and other factors that may cause actual results to differ from those anticipated in the forward-looking statements, and risks to CB Richard Ellis Group Inc.'s business in general, please refer to its SEC filings, including its Annual Report on Form 10-K for the fiscal year ended December 31, 2009 and its Quarterly Report on Form 10-Q for the quarter ended September 30, 2010.

SOURCE: CB Richard Ellis Group, Inc.

CB Richard Ellis Group, Inc.
Gil Borok
Chief Financial Officer
310.405.8909
or
Nick Kormeluk
Investor Relations
949.809.4308
or
Steve Iaco
Corporate Communications
212.984.6535

Categories: Press Releases
View all news