CB Richard Ellis declined to comment on the offering, citing SECregulations that restrict comment on pending offerings. Itsprospectus says that it intends to use the proceeds of the offering"for general corporate purposes, which may include the repayment ofprincipal of revolving credit loans and term loans under our seniorsecured credit agreement."

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The prospectus states, "We are highly leveraged and havesignificant debt service obligations." Although CBRE paid down itshigh-interest debt in 2006, it borrowed approximately $2.1 billionof term loans under its line of credit inDecember 2006 to financeits acquisition of Trammell Crow Co. and $300 million more in March2008. As of September 30, the company had $2.7 billion of totalrecourse debt outstanding, according to the prospectus.

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CBRE's president and CEO, Brett White, said during the company'sconference call last week that the company was considering a numberof options for raising public or private capital. "While we do notneed additional cushion at this time," White said, the companybelieves that raising capital "for a rainy day, could be a veryconservative and prudent course of action."

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While the prospectus does not detail timing, analyst BrandonDobell of WilliamBlair & Co. commented in a note this morningthat, "We would expect the deal to be priced on Wednesday" eitherduring or shortly after the close of trading. Dobell noted that oneof the options CBRE was considering was to increase its line ofcredit, but the size of the stock offering probably takes thatoption "off the table for good," Dobell commented in his note.

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CBRE last week reported comparable revenue for the third quarterended Sept. 30 versus last year's third quarter, but the company'snet income dropped to $40.4 million and 19 cents per share comparedto nearly $115 million and 48 cents per share last year. CBRE'smanagement team noted that a significant portion of the earningsdecline resulted from one-time charges, but the company also saidthat results during the quarter "were impacted by weak salesactivity caused by the global credit market turmoil, and softleasing performance reflecting weaker economic conditions."

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CB Richard Ellis stock was trading at $4.23 at mid-morningtoday, down $1.86 from Monday's close. The shares have tradedbetween $3.54 and $24.75 over the last year.

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The CBRE stock offering includes an option for the underwritersto buy 7.5 million additional shares to meet over-allotments.Credit Suisse Securities (USA) LLC and Banc of America SecuritiesLLC will act as joint bookrunning managers for the offering.

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If the underwriters exercise their option to purchase additionalshares in full, CBRE's net proceeds could be approximately $408.3million at the Nov. 7 closing price. However, the CBRE prospectusnotes that an increase or decrease of $1 per share in the offeringprice would increase or decrease the net proceeds by approximately$50 million.

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