What is the primary business activity of CBRE Holding, Inc. as of June 30, 2001?

As of June 30, 2001, CBRE Holding, Inc. had not yet commenced significant business operations. Its activities were primarily focused on its formation and securing financing for the upcoming merger with CB Richard Ellis Services, Inc. (CBRE), which was completed shortly after the period end.

What are the main sources of the Company's debt and how much is outstanding?

The Company's primary debt as of June 30, 2001, consists of $225.6 million in Senior Subordinated Notes due 2011, issued by its subsidiary BLUM CB Corp. The proceeds were held in escrow pending the merger. The report also discusses significant debt incurred on July 20, 2001, post-period end, including a $325 million senior secured credit facility and $65 million in 16% Senior Notes.

What is the financial performance for the period ending June 30, 2001?

For the period from its inception on February 20, 2001, to June 30, 2001, CBRE Holding, Inc. reported a net loss of approximately $0.7 million. This loss was primarily driven by $1.8 million in interest expense on the Senior Subordinated Notes, which exceeded the $0.6 million in interest income earned on the escrowed proceeds.

What are the implications of the merger with CB Richard Ellis Services, Inc. (CBRE) for investors?

The merger, completed on July 20, 2001, transformed CBRE Holding, Inc. into the parent company of a significant global real estate services firm. While this 10-Q filing precedes the full integration and financial reporting of the combined entity, it shows the substantial debt financing ($569 million in aggregate for the merger and related transactions) taken on to complete the acquisition. Investors should look to subsequent filings for the consolidated financial performance and operational impact of the combined company.

CBRE 10-Q Quarterly Report Q2 FY2001 — Revenue, Net Income, EPS

Summary

CBRE Holding, Inc. (the "Company") filed its Form 10-Q for the quarterly period ended June 30, 2001. This report reflects the Company's financial activities from its inception on February 20, 2001, up to June 30, 2001, primarily detailing financial activities related to its formation and the financing for the subsequent merger with CB Richard Ellis Services, Inc. (CBRE), which was completed shortly after the period end on July 20, 2001. The period's financial statements are largely characterized by significant financing activities, including the issuance of $229 million in Senior Subordinated Notes by a subsidiary and the issuance of common stock, resulting in substantial restricted cash and cash equivalents. The Company reported a net loss for the period, primarily due to interest expenses incurred on the newly issued debt, which offset the interest income earned on the escrowed proceeds. Investors should note that this filing largely predates the full operational integration of CBRE and the impact of the substantial debt taken on to fund the merger.

Key Highlights

1The Company was incorporated on February 20, 2001, and its financial activities during this period are primarily related to its formation and the financing for the acquisition of CB Richard Ellis Services, Inc. (CBRE).
2A significant event was the issuance of $229 million in aggregate principal amount of 11.25% Senior Subordinated Notes by BLUM CB Corp. on June 7, 2001. The net proceeds were held in escrow.
3The Company incurred a net loss of $0.7 million for the period from inception (February 20, 2001) to June 30, 2001, primarily driven by interest expenses on the Senior Subordinated Notes.
4Total assets as of June 30, 2001, were $238.3 million, largely comprising restricted cash and cash equivalents of $229.5 million from the note issuance proceeds.
5Total liabilities were $235.1 million, dominated by the $225.6 million in Senior Subordinated Notes (net of discount).
6The merger with CB Richard Ellis Services, Inc. was completed on July 20, 2001, shortly after the period end, and this report does not reflect the consolidated results post-merger.
7The Company has a dual-class common stock structure with Class A (one vote per share) and Class B (ten votes per share) common stock.

CBRE GROUP, INC. Quarterly Report for Q2 Ended Jun 30, 2001

Summary

Key Highlights

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