By Paul A. Harris
Portland, Ore., Jan. 25 - Realogy Corp. priced $918 million of eight-year senior secured notes in two tranches on Wednesday, according to an informed source.
The deal included $593 million of first-lien notes (existing B1/confirmed B-), which priced at par to yield 7 5/8%, at the tight end of price talk that was set in the 7¾% area.
In addition Realogy priced $325 million of 1.5-lien notes (existing Caa1/ confirmed CCC-) at par to yield 9%, at the tight end of the 9% to 9¼% price talk.
J.P. Morgan Securities LLC, Barclays Capital Inc., Credit Suisse Securities (USA) LLC and Goldman Sachs & Co. were the joint bookrunners for the quick-to-market deal.
The company will use the proceeds to prepay $629 million of first-lien borrowings under its senior secured credit facility due October 2013, to repay all $133 million outstanding under its non-extended revolving credit facility due April 2013 and to repay $156 million outstanding under its extended revolving credit facility due April 2016.
The company will reduce the commitments under the revolvers by an amount equal to the amount paid down.
Realogy, based in Parsippany, N.J., is a provider of real estate and relocation services.
| Issuer: | Realogy Corp.
|
| Amount: | $918 million
|
| Maturity: | Jan. 15, 2020
|
| Bookrunners: | J.P. Morgan Securities LLC, Barclays Capital Inc., Credit Suisse Securities (USA) LLC, Goldman Sachs & Co.
|
| Co-managers: | Credit Agricole CIB, Scotia Capital, Apollo Global Securities
|
| Trade date: | Jan. 25
|
| Settlement date: | Feb. 2
|
| Distribution: | Rule 144A and Regulation S for life
|
| Marketing: | Quick to market
|
|
|
| Senior secured first-lien notes
|
| Amount: | $593 million
|
| Coupon: | 7 5/8%
|
| Price: | Par
|
| Yield: | 7 5/8%
|
| Spread: | 603 bps
|
| Call features: | Make-whole call at Treasuries plus 50 bps until Jan. 15, 2016 then callable at 103.813, 101.906 par on and after Jan. 15, 2018
|
| Equity clawback: | 35% at 107.625 until July 15, 2012
|
| Change-of-control put: | 101%
|
| Existing ratings: | Moody's: existing B1
|
| Standard & Poor's: B-
|
| Price talk: | 7¾% area
|
|
|
| Senior secured 1.5-lien notes
|
| Amount: | $325 million
|
| Coupon: | 9%
|
| Price: | Par
|
| Yield: | 9%
|
| Spread: | 740 bps
|
| Call features: | Make-whole call at Treasuries plus 50 bps until Jan. 15, 2016, then callable at 104.5, 102.25, par on and after Jan. 15, 2018
|
| Equity clawback: | 35% at 109 until Jan. 15, 2015
|
| Change-of-control put: | 101%
|
| Ratings: | Moody's: existing Caa1
|
| Standard & Poor's: CCC-
|
| Price talk: | 9% to 9¼%
|
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