Realogy planning to repay half of revolver borrowings, CFO says

By Jennifer Lanning Drey

Savannah, Ga., May 4 - Realogy Corp. expects to repay about half of the $325 million outstanding balance on its revolving credit facility by the end of June, chief financial officer Anthony Hull said Wednesday during the company's first-quarter earnings conference call.

The $325 million outstanding balance at May 2 was largely due to semiannual interest paid in April, he said.

Realogy had $72 million of readily available cash and $30 million outstanding on its revolving credit facility at the March 31 end of the first quarter.

The company's total long-term debt excluding securitizations increased to $7 billion at March 31 from $6.9 billion at Dec. 31, Hull also reported. The increase was primarily the result of $98 million of revolver capacity being converted to term loans through refinancing transactions and the $30 million amount drawn on the revolver at quarter-end, he said.

At March 31, Realogy's senior secured leverage ratio was 3.83 to 1. The senior secured credit agreement requires that the ratio be no more than 4.75 to 1.

The company reported first-quarter EBITDA of negative $11 million.

Realogy's net revenue for the first quarter was $831 million, an increase of 1% from $819 million for the first quarter of 2010. The company said the increase was largely attributable to an increase in transaction volume in its relocation and title and settlement services segments.

Realogy is a Parsippany, N.J.-based provider of real estate and relocation services.

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