CB Richard Ellis pushes out some revolver and term loan maturities

By Sara Rosenberg

New York, Aug. 25 - CB Richard Ellis Group Inc. extended the maturities on a portion of its revolving credit facility and term loan debt, according to a news release.

Specifically, the company extended $243 million of its $600 million revolver by two years to June 2013. Of this amount, about $201 million will be a new revolver and $42 million will convert to term debt.

Depending on market conditions and other factors, the company expects that it will seek to extend, renew or replace additional portions of the remaining original revolver before its June 2011 expiration.

In addition, the company extended about $257 million of the outstanding term loan by 18 months to June 2013 and roughly $297 million of the term loan by two years to December 2015.

Also, $197 million of term debt amortization was extended to December 2013.

The extended tranches include modestly higher pricing, which the company anticipates will average about 60 basis points on the net outstanding balance of the new debt.

At the end of the second quarter, the company had $49 million drawn on the revolver and a leverage ratio of 2.47 times.

Remaining total required debt amortization payments will be $4 million in 2009, $180 million in 2010 and $234 million in 2011. The company anticipates prepaying some of the required amortization before it comes due.

"Extending maturities and deferring amortization on our existing credit facility is a key element of our strategy to proactively manage our balance sheet during this downturn," said Brett White, president and chief executive officer, in the release.

"The modifications, in combination with the other steps we have taken - amending our credit agreement to increase our flexibility, selling $600 million of securities to raise capital, and lowering operating expenses while increasing market share - have greatly enhanced our financial position and helped ensure that we remain one of the industry's best capitalized service providers, even if market conditions remain weak for an extended period," White added.

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

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