Bankers last week said syndication of Credit Suisse First Boston's $500 million credit backing Blum Capital's $750 million acquisition of CB Richard Ellis Services Inc., has been moving slowly. Bankers following the deal said there were only four commitments, including one institutional ticket, at the start of last week. But one banker close to the situation said more than 15 investors have chipped in since the mid-April bank meeting. It could not be determined when the credit is scheduled closing to close. Officials at CB Richard Ellis declined comment.
Credit Lyonnais is syndication agent and HSBC and Bank of Novia Scotia are the documentation agents on the credit. The $100 million revolver and a $150 million term loan "A" are both priced at LIBOR plus 3 1/4%, and the $250 million term "B" is priced at 3 3/4 %. Standard & Poor's rated the senior secured bank loans BB-, citing the commercial real estate services firm's high debt levels following the move to a private organization. An industry insider commented that the private buyout is the right thing for CB Richard Ellis to do, but it will be tough on financial flexibility in the near-term. The firm is the world's largest commercial real estate firm with revenues last year of $1.3 billion, and the pricing is comparable to similarly rated companies. But the market may be cool to exposure in the real estate market in the current economic climate, he added.