S&P rates Realogy loan C

Standard & Poor's said it assigned a C issue-level rating to Realogy Corp.'s proposed $475 million second-lien term facility due January 2014 with a recovery rating of 6.

Upon closing the proposed $475 million second-lien term loan, $150 million of the loan will be issued to Icahn Partners LP in exchange for about $218 million in face value of Realogy's senior toggle notes due 2014 held by Icahn Partners. Realogy will receive $325 million in proceeds from the second-lien term loan, which will be used to repay borrowings under the first-lien credit facilities and for general corporate purposes.

S&P said all other ratings on Realogy, including the CC corporate credit rating, were affirmed.

The outlook is negative.

"As a result of Realogy's plan to exchange $150 million of its new second-lien term loan for about $218 million of its senior toggle notes at less than par, we view the exchange as tantamount to default given the distressed financial condition of the company," said S&P credit analyst Emile Courtney in a news release.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.