CB Richard Ellis solicits tenders, consents for 9¾% notes

By Laura Lutz

Des Moines, Nov. 3 - CB Richard Ellis Group, Inc. launched a tender offer and consent solicitation for all $130 million outstanding principal amount of 9¾% senior notes due 2010.

The company is soliciting consents to amend the note indenture to eliminate most of the restrictive covenants and some events of default.

The tender offer will expire at 5 p.m. ET on Dec. 4.

For each $1,000 principal amount of notes, the company will pay the present value on the payment date of $1,048.75, which is the redemption price on the earliest possible redemption date, and the remaining scheduled interest payments to the redemption date, determined on the basis of a yield to the redemption date equal to the yield of the 4 3/8% U.S. Treasury due May 15, 2007 plus 50 basis points.

That amount includes a $30 per $1,000 principal amount consent payment for notes tendered before the consent deadline, 5 p.m. ET on Nov. 16.

The company will also pay accrued interest up to the payment date.

Holders who tender notes must also submit consents.

Settlement of the tender offer depends on receipt of consents from holders of a majority of the notes.

Credit Suisse (800 820-1653 or collect 212 538-0653) will act as dealer manager for the offer. Georgeson Inc. (866 244-9585 or collect 212 440-9800) is the information agent.

CB Richard Ellis is a commercial real estate services company based in Los Angeles.

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