By Paul A. Harris
St. Louis, Sept. 28 - Realogy Corp. priced its $650 million two-part 13½% eight-year second-lien term loan (C) at par on Friday, according to market sources.
Of the total, $150 million of the deal was taken down by Carl Icahn.
Realogy said $515 million was drawn on Monday and an additional $135 million is expected to be drawn on Oct. 9, on the same terms.
JPMorgan led the deal.
The loan will mature in October 2017. This was changed from an originally proposed maturity of January 2014.
Also modified is the call protection, which has gone to non-callable for three years from non-callable for two years. The notes will be callable in three years at 110.125.
Proceeds will be used to repay at least $365 million of borrowings on the company's $750 million revolving credit facility under its existing credit facility and refinance about $220 million of 11%/11¾% senior toggle notes due 2014 from affiliates of Icahn Partners, LP.
The net effect of the transactions is that Realogy will immediately reduce its outstanding debt by about $70 million.
Realogy is a Parsippany, N.J.-based provider of real estate and relocation services.
| Issuer: | Realogy Corp.
|
| Amount: | $650 million
|
| Maturity: | October 2017
|
| Description: | Second-lien term loan
|
| Bookrunner: | J.P. Morgan Securities Inc.
|
| Coupon: | 13½%
|
| Price: | Par
|
| Yield: | 13½%
|
| Call protection: | Callable in three years at 110.125
|
| Trade date: | Sept. 25
|
| Settlement: | $515 million on Sept. 28, $125 million on Oct. 9
|
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