By Paul A. Harris
Portland, Ore., June 9 – Realogy Group LLC and Realogy Co-Issuer Corp. priced an upsized $550 million issue of five-year senior secured second-lien notes (B3) at par to yield 7 5/8% on Tuesday, according to market sources.
Bookrunners were J.P. Morgan Securities LLC, Barclays, BofA Securities Inc., Capital One Securities Inc., Citizens Capital Markets Inc., Credit Agricole CIB, Goldman Sachs & Co. LLC, SunTrust Robinson Humphrey Inc., BMO Capital Markets Corp., Scotia Capital (USA) Inc., TD Securities (USA) LLC, Santander Investment Securities Inc. and Credit Suisse Securities (USA) LLC.
The issue size increased from $400 million.
The yield printed at the tight end of revised yield talk in the 7¾% area. Earlier talk was 8% to 8¼%. Initial guidance was in the high 8% area.
The deal was heard to be playing to $1 billion of orders on Tuesday morning, a trader said.
The notes were trading at 102½ bid and appeared to be headed higher on Tuesday afternoon shortly after the deal terms circulated the market, a trader said.
Realogy plans to use the proceeds to redeem a portion of its 5¼% senior notes due December 2021.
Realogy Group is a wholly owned subsidiary of Realogy Holdings Corp., a Madison, N.J.-based real estate services company.
| Issuers: | Realogy Group LLC and Realogy Co-Issuer Corp.
|
| Amount: | $550 million, increased from $400 million
|
| Maturity: | June 15, 2025
|
| Securities: | Senior secured second-lien notes
|
| Bookrunners: | J.P. Morgan Securities LLC, Barclays, BofA Securities Inc., Capital One Securities Inc., Citizens Capital Markets Inc., Credit Agricole CIB, Goldman Sachs & Co. LLC, SunTrust Robinson Humphrey Inc., BMO Capital Markets Corp., Scotia Capital (USA) Inc., TD Securities (USA) LLC, Santander Investment Securities Inc. and Credit Suisse Securities (USA) LLC
|
| Coupon: | 7 5/8%
|
| Price: | Par
|
| Yield: | 7 5/8%
|
| Spread: | 722 bps
|
| Call protection: | Two years
|
| Trade date: | June 9
|
| Settlement date: | June 16
|
| Rating: | Moody's: B3
|
| Distribution: | Rule 144A and Regulation S for life
|
| Price talk: | 7¾% area, revised from 8% to 8¼%
|
| Marketing: | Roadshow
|
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