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]