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Struggling Realogy targets $918M debt refinancing

by David Carey  |  Published January 26, 2012 at 11:56 AM
Realogy Corp., a private equity-backed residential real estate broker freighted with nearly $7 billion of debt, said Wednesday, Jan. 25, that it aims to raise $918 million of secured notes due 2020.

It will use the proceeds to prepay $762 million of bank debt coming due in October 2013 and $156 million of borrowings that mature in 2016.

The offering will consist of $593 million of first-lien notes and $325 million of first-and-a-half-lien notes, it said. It will cap a series of so-far successful moves by Realogy over the past year to push out maturities on more than $3 billion of bank debt, originally coming due in 2013, to 2016 and beyond.

Parsippany, N.J.-based Realogy took on the debt in 2007 to fund an $8.8 billion leveraged buyout by Apollo Global Management LLC.

With real estate in the dumps, Ebitda fell precipitously in 2009 and, Realogy estimates, fell 11% last year.
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Tags: Apollo Global Management LLC | debt financing | Ebitda | LBO | leveraged buyout | real estate broker | Realogy Corp.

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