By Paul A. Harris
Portland, Ore., Jan. 5 – Realogy Holdings Corp. priced an upsized $1 billion issue of 8.25-year senior notes (B2/B+) at par to yield 5¼% in a Wednesday drive-by, according to market sources.
The issue size increased from $900 million, after having earlier grown from the originally announced size of $550 million.
The yield came at the tight end of the 5¼% to 5½% yield talk. Initial guidance was in the mid-5% area.
The deal, which was heard to have been driven into the market on $350 million of reverse inquiry, with $2.5 billion in the order book at midday Wednesday, traded as low as 99¼ bid, 99¾ offered post-break, a trader said.
J.P. Morgan Securities LLC was the lead bookrunner.
The issuing entities were Realogy Group LLC and Realogy Co-Issuer Corp.
The Adison, N.J.-based real estate services provider plans to use the proceeds plus cash on hand to redeem and retire its 9 3/8% senior notes due 2027 and its 7 5/8% senior secured second-lien notes due 2025.
| Issuers: | Realogy Group LLC and Realogy Co-Issuer Corp.
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| Amount: | $1 billion, upsized twice, from $550 million, then from $900 million
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| Issue: | Senior notes
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| Maturity: | April 15, 2030
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| Lead: | J.P. Morgan Securities LLC
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| Coupon: | 5¼%
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| Price: | Par
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| Yield: | 5¼%
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| Spread: | 364 bps
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| First call: | April 15, 2026 at 102.625
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| Trade date: | Jan. 5
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| Settlement date: | Jan. 10
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| Ratings: | Moody's: B2
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| S&P: B+
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| Distribution: | Rule 144A and Regulation S
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| Price talk: | 5¼% to 5½%
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| Marketing: | Drive-by
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