CB Richard Ellis Inc. said Wednesday that hedge fund operator Paulson & Co., will buy $100 million in stock as part of a $550 million capital-raising effort by the real estate services provider.

The Los Angeles company, which also is cutting $500 million in annual operating costs as the commercial real estate market continues to flounder, plans to sell $400 million in 10-year notes and $150 million in stock to repay debt. Its lenders in March agreed to ease the terms of its credit agreement to give the company more flexibility.

Paulson & Co., which is part of the consortium that acquired the assets of IndyMac Federal Bank earlier this year, is expected to buy 13.4 million shares of CB Richard Ellis. The real estate company plans to sell the remaining $50 million in stock directly to the public.

In its announcement, CB Richard Ellis also said it expected second quarter results ranging between break-even and a 7 cent per share profit, but cautioned its guidance was “highly preliminary” given the volatile market.

Shares were down 45 cents, or 2 percent, to $19.43 in midday trading on the New York Stock Exchange.