New Issue: CB Richard Ellis sells upsized $450 million 11 5/8% eight-year notes to yield 12¼%

By Paul A. Harris

St. Louis, June 15 - CB Richard Ellis Services, Inc. priced an upsized $450 million issue of 11 5/8% eight-year senior subordinated notes (Ba3/B+/) at 96.873 to yield 12¼% on Monday, according to an informed source.

The yield came at the wide end of the 12% to 12¼% yield talk. The issue price came in line with the price talk, which set out approximately 3 points of original issue discount.

Banc of America Securities LLC, Credit Suisse and J.P. Morgan Securities Inc. were joint bookrunners for the offering, which was upsized from $400 million

Proceeds will be used to repay some of the company's outstanding credit agreement debt.

The issuer is a Los Angeles-based commercial real estate services company.

Issuer:	CB Richard Ellis Services, Inc.
Amount:	$450 million, increased from $400 million
Proceeds:	$435.929 million (approximate)
Maturity:	June 15, 2017
Security description:	Senior subordinated notes
Bookrunners:	Banc of America Securities LLC, Credit Suisse, J.P. Morgan Securities Inc.
Co-managers:	HSBC Securities (USA) Inc., Barclays Capital Inc., RBS Securities Inc., Scotia Capital (USA) Inc.
Coupon:	11 5/8%
Price:	96.873
Yield:	12¼%
Spread:	876 bps
Call protection:	Make-whole at Treasuries plus 50 bps until June 15, 2013, then callable at a premium
Equity clawback:	35% at 111.625 until June 15, 2012
Trade date:	June 15
Settlement date:	June 18
Ratings:	Moody's: Ba3
	Standard & Poor's: B+
Distribution:	Rule 144A with registration rights/Regulation S
Price talk:	12% to 12¼% with approximately 3 points of OID

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