CB Richard Ellis launches $800 million in delayed-draw term loans

By Sara Rosenberg

New York, Feb. 17 - CB Richard Ellis Group Inc. held a conference call on Thursday at 1 p.m. ET to launch $800 million in delayed-draw senior secured term loans, according to sources.

Credit Suisse Securities (USA) LLC and Bank of America Merrill Lynch are the lead banks on the deal.

The debt is comprised of a $500 million delayed-draw seven-year term loan C talked at Libor plus 325 basis points and a $300 million delayed-draw 81/2-year term loan D talked at Libor plus 350 bps, with both tranches offered at an original issue discount of 991/2, sources said. There is no Libor floor on either piece.

Proceeds from the loans will be used to help fund the roughly $940 million (or $1.2 billion all-in) acquisition of the real estate investment management business of ING Group NV.

In addition, the company is looking to amend its existing credit facility to allow its wholly-owned subsidiaries to be borrowers of the new term loans, to maintain the availability of the credit agreement's accordion feature at $800 million and to add an exception to the investment covenant relating to the acquisition.

Under the agreement, CB Richard is purchasing substantially all of the ING REIM operations in Europe and Asia, as well as Clarion Real Estate Securities, its U.S.-based global real estate listed securities business.

CB Richard will also acquire about $55 million of CRES co-investments from ING and potentially interests in other funds managed by ING REIM Europe and ING REIM Asia.

The transaction is expected to close in the second half of this year, subject to approval by certain stakeholders, including regulatory agencies in the United States., Europe and Asia.

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

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