Realogy extending over $3 billion of credit facility commitments

By Sara Rosenberg

New York, Jan. 27 - Realogy Corp. has received commitments for the extension of about $2.421 billion of its term loan B, about $461 million of its revolver and about $173 million of its synthetic letter-of-credit facility, according to an 8-K filed with the Securities and Exchange Commission on Thursday.

In addition, the company will convert about $98 million of extended revolver loans to extended term loan B borrowings, the filing said.

The total amount of commitments in respect of non-extended and extended revolver loans will be roughly $652 million.

And, about $638 million of first-lien term loans were not extended.

The extended revolver due April 10, 2016 is priced at Libor plus 325 basis points, while the non-extended revolver that matures three years earlier is priced at Libor plus 225 bps.

The extended term loan and synthetic letter-of-credit facility due Oct. 10, 2016 is priced at Libor plus 425 bps, while the non-extended facility that matures three years earlier is priced at Libor plus 300 bps.

Also under the amendment, the company is allowed future issuances of additional senior secured or unsecured notes or loans to prepay first-lien term loans and/or second-lien loans, and to incur $350 million of incremental term loans that are secured on a junior basis to the second-lien loans.

Investors were offered a 10 bps amendment fee.

As a condition to the amendment, the company is required to 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 coming in the form of a bond offering.

Lenders holding about $103 million of the extended term loan B elected not to receive a portion of the $700 million prepayment. Lenders holding the remaining $2.318 billion of the extended B loan will receive the $700 million prepayment on a pro rata basis, which represents a total paydown of about 30% of the loans that elected to receive a portion of the prepayment.

JPMorgan is the administrative agent on the deal.

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

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