Realogy to get new credit facility for LBO by Apollo

By Sara Rosenberg

New York, Dec. 18 - Realogy Corp. is planning on getting a new credit facility to help back its leveraged buyout by Apollo Management, LP, according to a market source.

JPMorgan, Credit Suisse and Bear Stearns are the lead banks on the deal.

Under the transaction agreement, Apollo is buying the company in a transaction valued at about $9 billion, including the assumption or repayment of $1.6 billion of net debt and legacy contingent and other liabilities of about $750 million.

Apollo has committed to provide $2 billion of equity to complete the buyout.

The transaction is expected to close in the spring of 2007, subject to Realogy stockholder approval, antitrust and insurance approvals and other customary closing conditions.

Substantially all of the company's floating-rate senior notes due 2009, 6.15% senior notes due 2011 and 6.5% senior notes due 2016 will be either assumed or repaid. The transaction, however, does not require the consent of any bondholders. If Realogy's credit rating falls below investment grade and a change of control has occurred, the company would be required to offer to repurchase these notes at 100% of face value following the closing.

Realogy may solicit alternative proposals from third parties until Feb. 14 and intends to consider any such proposals through its special committee and with the assistance of its independent advisers.

Realogy is a Parsippany, N.J., real estate franchisor.

© 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.