RE/MAX launches $300 million credit facility

By Sara Rosenberg

New York, May 1 - RE/MAX International Inc. held a bank meeting on Tuesday to launch its proposed $300 million credit facility, according to a market source.

Citigroup is the lead bank on the deal.

The facility consists of a $145 million eight-month funded term loan B and a $155 million eight-month delayed-draw term loan, with both tranches initially talked at Libor plus 250 basis points, the source said.

Once ratings come out, if the corporate rating is at least Ba3/BB-, then pricing on the two term loans will be Libor plus 200 bps, and if the corporate rating is less than Ba3/BB-, then pricing will be Libor plus 250 bps, the source added.

There is a 50 bps undrawn fee on the delayed-draw term loan.

Proceeds from the funded term loan B will be used to fund the acquisitions of independently owned RE/MAX of California and Hawaii, and proceeds from the delayed-draw will be used to fund the acquisitions of independently owned RE/MAX of Carolina and Florida.

RE/MAX is a Denver-based real estate company.

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