RE/MAX lowers spread on $235 million term loan to Libor plus 275 bps

By Sara Rosenberg

New York, Dec. 7 – RE/MAX LLC trimmed pricing on its $235 million seven-year term loan to Libor plus 275 basis points from Libor plus 300 bps, according to a market source.

Also, the original issue discount on the term loan was set at 99.5, the tight end of the 99 to 99.5 talk, and the 101 soft call protection was extended to one year from six months, the source said.

The term loan still has a 0.75% Libor floor.

The company’s $245 million credit facility (Ba3/BB+) also includes a $10 million revolver.

J.P. Morgan Securities LLC is the lead bank on the deal.

Proceeds will be used to refinance $188 million in outstanding debt and fund the acquisition of RE/MAX Regional Services.

Net debt to adjusted EBITDA will be 1.8 times.

RE/MAX is a Denver-based franchisor of real estate brokerage services.

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