Realogy talks $300 million five-year exchangeable notes to yield 0.25%-0.75%, up 35%-40%

By Abigail W. Adams

Portland, Me., May 27 – Realogy Holdings Corp. plans to price $300 million of five-year exchangeable notes after the market close on Thursday with price talk for a coupon of 0.25% to 0.75% and an initial exchange premium of 35% to 40%.

The notes will be issued by Realogy Group LLC and exchangeable for Realogy Holdings shares.

J.P. Morgan Securities LLC (lead left), BofA Securities Inc. and Goldman Sachs & Co. LLC are joint bookrunners for the Rule 144A offering, which carries a greenshoe of $45 million.

The notes are non-callable for three years and then subject to a 130% hurdle.

There is takeover and dividend protection.

The notes will be settled in cash up to their principal amount with the remaining to be settled in cash, shares or a combination of both at the company’s option.

In connection with the offering, the company will enter into convertible note hedge and warrant transactions.

Proceeds will be used to cover the cost of the call spread and for general corporate purposes.

Realogy is a Madison, N.J.-based integrated residential real estate services provider, which includes brokerage, relocation, title and settlement businesses and a mortgage joint venture.

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