S&P rates Realogy loan BB+

S&P said it assigned a BB+ rating and 1 recovery to Realogy Group LLC's proposed $330 million term loan A due 2021.

The 1 recovery rating reflects an expectation of 90% to 100% expected default recovery.

S&P also said it affirmed the BB+ rating on the company's outstanding senior secured term loan A due 2020 and senior secured term loan B.

The maturity on the term loan B will be extended to 2022 from 2020. The recovery rating on this debt remains at 1.

S&P also said it raised the ratings on Realogy's senior unsecured notes due 2019, 2021 and 2023 to B+ from B and removed them from CreditWatch with positive implications, where they were originally placed May 26.

The agency also said it revised the recovery rating on this debt to 5 from 6. The 5 recovery rating reflects 10% to 30% expected default recovery.

The proceeds will be used from the new term loan A and Realogy's recent $500 million senior notes issuance to reduce the outstanding senior secured term loan B balance to $1.1 billion from about $1.9 billion, which improves recovery prospects for unsecured lenders, leading to an upward revision of the recovery rating and one-notch upgrade of the senior unsecured debt, S&P said.

The BB- corporate credit rating and stable outlook on the company are unchanged.

© 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.