Realogy seeks $325M in loans as debt rises
September 24, 2009 06:30PM
Pam Liebman, CEO of Corcoron, which is under the Realogy umbrella
Realogy's debt prices skyrocketed as the real estate giant announced it is seeking $325 million of second-lien term loans in exchange for bonds held by Icahn Partners. According to a source familiar with the deal, JPMorgan Chase will arrange the 4.5-year loan, which will be used to repay existing bank debt which has climbed even higher. As of 2:44 p.m. today, Realogy's $1.7 billion of 10.5 percent notes due in 2014 rose 8.6 cents to 80.75 cents on the dollar, according to Trace, a bond price reporting system of the Financial Industry Regulatory Authority. "The transaction, if it closes, will allow Realogy to pay down first-lien secured debt," said Emile Courtney, an analyst at Standard & Poor's. [Bloomberg]
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