CB Richard Ellis repaying $144.9 million notes, loans

New York, July 6 - CB Richard Ellis Group Inc. said it is in the process of repaying $144.9 million of debt using proceeds from its initial public offering completed on June 15 and internally generated cash flow.

The Los Angeles commercial real estate services firm will redeem $70 million principal amount of its 9¾% senior notes due 2010 and $38.3 million of its 16% senior notes due 2011.

Already completed is the prepayment of $15 million of term loan borrowings under its amended and restated credit agreement and the repayment of $21.6 million of 11¼% senior subordinated notes due 2011.

"The net proceeds from the initial public offering as well as the cash generated by our diversified real estate services platform has provided us with the necessary capital to strengthen our balance sheet and achieve a significant ongoing reduction in interest expense of approximately $14 million," said Ray Wirta, chief executive officer of CB Richard Ellis Group, in a news release. "The company's intention is to continue to pay down debt with cash flow generated from operations."

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