Koll Shares Pledged in Credit Agreement
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NEWPORT BEACH — Koll Co. has pledged 1.81 million shares of Koll Management Services Inc.’s common stock to Wells Fargo Bank N.A. and Bank of America as collateral for a credit agreement with the two banks, Bloomberg Business News reported Tuesday.
Koll Co., Koll Management’s largest single shareholder, retains all voting rights for the shares in the real estate management company it spun off in 1991.
A default, however, would give the banks the right to vote the shares and to take other steps including sale of the stock, the news report said, quoting from a form Koll Management filed Tuesday with the Securities and Exchange Commission.
Under the credit agreements, Wells Fargo holds 901,000 Koll Management shares and Bank of America holds 909,000. The shares, representing 55% of Koll Management’s outstanding stock, are worth more than the existing debt the Koll Co. has with both banks, the filing said.
Officials at Koll Co. and Koll Management Services could not be reached Tuesday evening to comment.
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