Realogy launches credit facility amendment and extension to investors

By Sara Rosenberg

New York, Jan. 18 - Realogy Corp. held a lender call at 11 a.m. ET on Tuesday to launch an amendment and extension for its senior secured credit facility, according to a market source.

Under the proposal, the company is looking to extend its revolver by three years to April 10, 2016 and its first-lien term loan and synthetic letter of credit facility by three years to Oct. 10, 2016.

Pricing on the extended revolver would be Libor plus 325 basis points, up from non-extended pricing of Libor plus 225 bps, and pricing on the extended term loan and letter of credit facility would be Libor plus 425 bps, up from Libor plus 300 bps on the non-extended, the source said.

In addition, the amendment would provide the company with additional flexibility to get secured debt and additional junior-lien debt. The secured debt would be used to refinance existing secured and unsecured debt.

As a condition to the amendment, the company must undertake a new $700 million secured debt financing that will be used to prepay a portion of the extended term loans. This new debt financing is expected to come in the form of a bond offering.

Lenders are being offered a 10 bps amendment fee.

Responses are due on Jan. 25.

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

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