S&P gives Realogy notes B-

Standard & Poor's said it assigned its B- rating to Realogy Corp.'s proposed $1.5 billion senior notes due 2014, $750 million senior pay-in-kind (PIK) toggle notes due 2014 and $900 million senior subordinated notes due 2015.

Proceeds form the proposed notes, in addition to a previously rated bank facility and owner's equity, will be used to help fund the $8.5 billion leveraged buyout of the company by Apollo Management LP, which is expected to close within the next few weeks, S&P said, adding that the B- rating on the proposed notes is two notches below Realogy's expected post-LBO corporate credit rating of B+ given the significant amount of priority debt in the pro forma capital structure.

In addition, S&P said it affirmed its loan and recovery ratings on Realogy's senior secured credit facilities, following the increase in the term commitment under the loan by $500 million.

The secured loan rating is BB with a recovery rating of 1, indicating the expectation for full recovery of principal in the event of a payment default, the agency said.

© 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.