CB Richard Ellis to redeem 16%, 9¾% notes with IPO proceeds

Pittsburgh, June 10 - CB Richard Ellis Group Inc. will use proceeds from its initial public offering of 24 million shares of its common stock to redeem the remaining $38.3 million of its 16% senior notes due 2011 and $70 million of its 9¾% senior notes due 2010, according to a filing with the Securities and Exchange Commission.

In addition to repayment of the outstanding $38.3 million principal amount, the redemption of the 16% notes will require payment of a $3.7 million premium plus accrued interest through the date of redemption. Redemption of the 9¾% notes will require payment of a $6.8 million premium, plus accrued interest.

CB Richard Ellis priced its offering of 24 million shares of class A common stock Thursday at $19 per share.

Proceeds of the offering will also be used to prepay $16.9 million of the company's term loan.

CB Richard Ellis is a Los Angeles-based commercial real estate services firm.

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