MADISON, N.J., Oct. 27, 2015 /PRNewswire/ -- Realogy Holdings Corp. (NYSE: RLGY), the preeminent and most integrated provider of residential real estate services in the United States, today announced that it has closed on $1.25 billion of new senior secured credit facilities.
The financing includes an expanded revolving credit facility of $815 million (increased from $475 million) and a new $435 million Term Loan A facility. Both facilities have a five-year maturity and an interest rate spread that varies based on the Company's senior secured leverage ratio and LIBOR or ABR rates. The terms of Realogy's existing Term Loan B remain unchanged.
"By year-end 2015 we expect to redeem all $789 million of our outstanding senior secured notes – our highest-cost debt," said Anthony E. Hull, Realogy's chief financial officer and treasurer. "This is in keeping with our long-stated priority of deleveraging our balance sheet."
In connection with the financing, Realogy called and discharged its obligations relating to its 7.625% $593 million of First Lien Notes. In addition, before year-end 2015, the Company plans to use cash on hand and revolver borrowings to redeem all $196 million of 9.00% First and a Half Lien Notes, plus related premiums and accrued interest.
Hull added: "Along with our plan to retire $500 million in senior notes due May 2016 with cash on hand and revolver borrowings, this transaction will enable us to reduce our 2016 corporate cash interest expense to approximately $170 million from our current annualized run rate of $210 million."
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, as amended. These forward-looking statements include, but are not limited to, statements related to the revolving credit facility amendment and Term Loan A financing, the anticipated redemption of the 9.00% First and a Half Lien Notes by year-end 2015 and our expectation regarding the repayment of the $500 million 3.375% Senior Notes at maturity in May 2016 with cash on hand and revolver borrowings. These forward-looking statements involve known and unknown risks, uncertainties and other factors discussed in Realogy's filings with the SEC. Any forward-looking statements speak only as of the date of this press release and, except to the extent required by applicable securities laws, Realogy expressly disclaims any obligation to update or revise any of them to reflect actual results, any changes in expectations or any change in events. For additional information concerning risks, uncertainties and other factors that may cause actual results to differ from those anticipated in the forward-looking statements, and risks to our business in general, please refer to Realogy Holdings Corp.'s SEC filings, including its Annual Report on Form 10-K for the fiscal year ended December 31, 2014 and its quarterly report on Form 10-Q for the quarterly period ended June 30, 2015.
About Realogy Holdings Corp.
Realogy Holdings Corp. (NYSE: RLGY) is a global leader in residential real estate franchising and brokerage with many of the best-known industry brands including Better Homes and Gardens® Real Estate, CENTURY 21®, Coldwell Banker®, Coldwell Banker Commercial®, The Corcoran Group®, ERA®, Sotheby's International Realty® and ZipRealty®. Collectively, Realogy's franchise system members operate approximately 13,500 offices with more than 254,800 independent sales associates conducting business in 111 countries and territories around the world. NRT LLC, Realogy's company-owned real estate brokerage, is the largest residential brokerage company in the United States, operates under several of Realogy's brands and also provides related residential real estate services. The Company also owns Cartus, a prominent worldwide provider of relocation services to corporate and affinity clients, and Title Resource Group, a leading provider of title, settlement and underwriting services. Realogy is headquartered in Madison, New Jersey.
SOURCE Realogy Holdings Corp.