Moody's: Realogy notes Caa2

Moody's Investors Service said it assigned a Caa2 (LGD6, 92%) rating to Realogy Group LLC's proposed $450 million of senior notes due 2016. The B3 corporate family rating and SGL-2 speculative grade liquidity rating are unchanged.

The agency revised the loss-given-default rate on the company's senior secured revolving credit facility due 2018, senior secured term loan due 2020 and senior secured first-lien notes due 2020 to 29% from 26% and on its senior secured first-lien notes due 2019 and 2020 to 77% from 72%. The loans and notes due 2020 are rated B1 (LGD2), and the notes due 2019 and 2020 are rated Caa1 (LGD5).

The proceeds of the new notes and revolving credit loans will be used to repay in full $492 million of 11½% senior notes due 2017.

The agency said the refinancing is a credit neutral action. Interest expense will be lowered, but liquidity will be reduced as the revolver is being drawn substantially and the new notes mature one year sooner, Moody's said.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.