The $150-million IPO comes less than three years after CB Richard Ellis, which formerly traded on the New York Stock Exchange, was taken private by the Blum group in an $800-million transaction that closed on July 20, 2001. Last year, CBRE made global real estate news when it acquired New York City-based Insignia Financial Group in a $431-million merger. Officials of CB Richard Ellis Group Inc. declined to discuss the IPO, citing SEC quiet-period regulations concerning pending stock offerings.
The filing says CBRE expects to use the net proceeds from the offering "to redeem the remaining $38.3 million aggregate principal amount of our 16% senior notes due 2011," as well as for other general corporate purposes, including repayment of other debt.
One observer comments that, "Even if you look at comments made at the time of the Insignia acquisition , CBRE always maintained that there could be an opportune time to tap the public equity markets again. It's all a matter of timing."
The offering is being made through an underwriting syndicate led by Credit Suisse First Boston LLC and Citigroup Global Markets Inc., which will act as joint book-running managers.
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