CB Richard Ellis Group Inc. on Thursday said it has arranged for $1.5 billion in new credit, paid back $460 million in debt and refinanced another $650 million.
The Los Angeles real estate services firm established a $700 million revolving credit facility at an initial interest rate of 2.25 percent over the benchmark LIBOR (London Interbank Offered Rate). It also obtained a separate $800 million credit line that can be expanded.
The company refinanced a five-year, $350 million term loan with a new initial interest rate of 2.25 percent over LIBOR, and a six-year $300 million term loan at 3.25 percent over the interbank bench rate. It paid back $460 million in debt with cash.
CB Richard Ellis said that since January 2009 it has reduced its aggregate net debt by $775 million, or about 40 percent. Credit Suisse, Bank of America Merrill Lynch and HSBC led the refinancing. Wells Fargo also participated.
“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,” said Chief Executive Brett White in a statement.
Shares closed down 3 cents, or less than 1 percent, to $20.16 on the New York Stock Exchange.
