Realogy enters amendments to credit agreement, loan agreement

By Taylor Fox

New York, Jan. 27 – Realogy Holdings Corp.’s wholly-owned subsidiary, Realogy Group LLC, entered into a 10th amendment to its credit agreement and a fourth amendment to its term loan agreement, according to an 8-K filed with the Securities and Exchange Commission on Wednesday.

The amendment extends to February 2025 from February 2023 the maturity for $237 million of the $434 million balance of the term loan A facility after giving effect to the application of a $250 million pay down using a portion of the net proceeds from the Jan. 11 issuance of 5¾% senior notes due 2029.

It also extends the maturity of $948 million of the $1,425,000,000 revolving credit facility to February 2025 from February 2023, subject to the earlier springing maturity dates applicable to the extended term loan A facility.

The amendments will also make certain modifications to the credit agreement and term loan A agreement, including amendments that reduce the maximum permitted senior secured leverage ratio for the applicable trailing 12-month period to below the levels that had been permitted under the amendments to the agreements that were entered into on July 24, 2020.

If Realogy’s senior secured leverage ratio does not exceed 5 to 1 for the fiscal quarter ending June 30, 2021, as compared to 5.5 to 1 under the 2020 amendments, the covenant period will end at the time Realogy delivers the compliance certificate to the lenders for such period. In either instance, the gradual step-down in the senior secured leverage ratio will continue to apply.

Under the 2021 amendments, quarterly amortization payments are required on the extended term loan A facility, commencing with the quarter ending June 30, 2021, based on a percentage of the principal amount of extended term loan A facility outstanding as of the date of the fourth amendment, as follows: 0.625% per quarter from June 30, 2021 to March 31, 2022; 1.25% per quarter from June 30, 2022 to March 31, 2023; 1.875% per quarter from June 30, 2023 to March 31, 2024; and 2.5% per quarter for periods ending on or after June 30, 2024, with the balance of the extended term loan A facility due at maturity.

No amortization payments are required on the portion of the term loan A facility that was not extended.

JPMorgan Chase Bank, NA is the administrative agent.

Realogy is a Madison, N.J.-based provider of U.S. residential real estate services.

© 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.