Realogy, Icahn agree to swap 70% of 11%-11¾% toggle notes for loans

By Jennifer Chiou

New York, Sept. 24 - Realogy Corp. entered into an agreement with Icahn Partners, LP and an affiliate of Apollo Management, LP to exchange about 70% of Realogy's $311 million of 11%-11¾% senior toggle notes due 2014, according to an 8-K filing with the Securities and Exchange Commission.

The privately negotiated transaction with Icahn will occur if Realogy consummates its incremental term loans transaction or an alternate second-lien term loan transaction.

In exchange for the toggle notes, Realogy will issue $150 million of new second-lien term loans under its credit facility.

Additionally, Icahn has agreed to sell the balance of the toggle notes it holds as well as those held by its affiliates for cash to Apollo and participate as a lender in the incremental term loans transaction.

Further, Realogy has been engaged in confidential discussions with some institutional holders of its 10½% senior notes due 2014, the toggle notes and its 12 3/8% senior subordinated notes due 2015 to issue equity and new debt for the securities.

The company noted that the exchanges may not necessarily occur.

Realogy is a Parsippany, N.J.-based provider of real estate and relocation services.

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