At the time CB Richard Ellis announced its acquisition of Trammell Crow, it also announced its intention to dispose of Trammell Crow's interest in Savills, a real estate services company. CBRE disposed of the 19% interest through the sale of nearly 25.9 million shares of Savills common stock by way of a so-called bookbuild offering, an open-market transaction, which was managed by Credit Suisse Securities (Europe) Ltd., Hoare Govett Ltd. and Morgan Stanley Securities Ltd.
CBRE will use the proceeds of the disposition primarily to reduce the debt that the L.A.-based company incurred to finance the acquisition of Trammell Crow. CB Richard Ellis acquired Dallas-based Trammell Crow in a $2.2-billion transaction that included approximately $1.9 billion for the equity purchase and the balance attributed to transaction and integration costs, as well as repayment of Trammell Crow corporate debt.
CBRE is financing the deal with a five-year, $1.1-billion tranche A-term loan and a seven-year, $1.1-billion B loan. The company's existing credit facility was also amended to complete the transaction.
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