Moody’s cuts, rates Anywhere notes Ba3

Moody’s Investors Service said it downgraded Anywhere Real Estate Group LLC’s senior unsecured notes due 2029 and 2030 to B3 from B2 and assigned a Ba3 rating to its planned senior secured second lien notes due 2030. The agency also lowered the speculative grade liquidity rating to SGL-2 from SGL-1.

Moody’s said it also affirmed Anywhere's corporate family rating at B1, probability of default rating at B1-PD and senior secured first-lien bank credit facilities at Ba1.

On Tuesday, Anywhere announced an agreement to exchange about $273 million face value of its 5¾% and 5¼% senior unsecured notes due 2029 and 2030, respectively, for about $218 million of new 7% senior secured second-lien notes due 2030, at an exchange rate of 80 cents. The company also started an exchange offer for up to an additional $527 million of unsecured 2029 and 2030 notes for the second-lien notes at an exchange rate of 78 cents plus a $0.02 premium.

“The downgrade of the senior unsecured notes to B3 from B2 reflects the increased proportion of secured to unsecured claims following the exchange. The Ba3 rating assigned to the senior secured second-lien notes reflects its junior position with respect to the first-lien claims and priority position in the capital structure ahead of the unsecured claims,” Moody’s said in a press release.

The outlook is negative.

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