CBRE Uses IPO Net Proceeds to Pay Down Debt

NEW YORK CITY-CB Richard Ellis Group is using net proceeds from its June 15 Initial Public Offering and internally generated cash flow to pay down a portion of its high interest debt. The company raised approximately $138 million of net proceeds from the offering of 7.7 million class A common shares at $19 per share. CBRE has or expects to redeem a total of $144.9 million of debt by July 20.

CBRE president Brett White tells GlobeSt.com the IPO was a “non-event inside the company. It’s good to be public. We feel we have a lot to offer investors.” He said the company remains “very comfortable with its capital structure. The proof is in the data.”

Regarding the merger of CBRE and Insignia/ESG, White says, “We’ll look back at it as a case study in how to do it right.” He was surprised “how well the local offices came together. It was a really painless integration. We had expected to work harder at getting the offices to culturally and physically merge.” White says a factor in helping that integration was dispelling fears on the local level. “There was very little uncertainty.” He says the company was able to retain customers and employees as well as realize some expense reductions.