CB Richard Ellis share sale could net at least $180 million
NEW YORK (Reuters) - CB Richard Ellis Group Inc (CBG.N), the world's largest real estate services firm, said on Wednesday that it expected to realize about $180 million from a public offering of 50 million shares priced at $3.77 per share.
The offering provides underwriters with an over-allotment option of 7.5 million share. The offering and over-allotment could net CB Richard Ellis $207.1 million.
Los Angeles-based CB Richard Ellis expects to use the proceeds from the sale for general corporate purposes.
"We are pleased to be able to complete this equity transaction in one of the most adverse stock market environments," Brett White, chief executive officer, said in a statement, adding that the company does not have an immediate need for additional liquidity.
Shares of CB Richard Ellis on Wednesday closed at $3.77, down 19.4 percent. About a year ago, the stock sold for $24.60.
CB Richard Ellis announced the share offering earlier this week as it noted that an attempt to raise $300 to $400 million through a private placement failed, JMP Securities LLC analyst William Marks wrote after the November 10 announcement.
"While we believe this offering will help to alleviate concerns about the company's year-end leverage levels as they relate to loan covenants, the deal is very dilutive to shareholders," he wrote.
(Reporting by Ilaina Jonas; Editing by Kim Coghill)
