Realogy Group LLC -- Moody's says Realogy's extended term loan A and revolver maturity date is a positive liquidity development

Announcement: Moody's says Realogy's extended term loan A and revolver maturity date is a positive liquidity developmentGlobal Credit Research - 28 Jan 2021B2 CFR, Ba2 senior secured 1st lien and other ratings unchangedNew York, January 28, 2021 -- Moody's Investors Service, ("Moody's") said that Realogy Group LLC's ("Realogy") announced extension of $237 million of its $434 million senior secured 1st lien term loan A and $948 million of its $1,425 million senior secured 1st lien revolving credit facility to February 2025 from February 2023 is a positive liquidity development as the partial extension reduces to about $1.3 billion the 2023 maturity wall by pushing out nearly $1.2 billion of debt (including undrawn revolver capacity) to 2025. The term loan amounts reflect $250 million of announced repayments with proceeds of its recently-place 5.75% notes due 2029. However, the maturity extensions are leverage neutral and were expected after earlier company announcements. Therefore, Realogy's B2 corporate family rating, B2-PD probability of default rating, Ba2 senior secured 1st lien rating, B3 2nd lien rating, Caa1 unsecured rating and SGL-2 Speculative Grade Liquidity rating, as well as the stable outlook, remain unchanged at this time.As a part of the transaction, Realogy tightened the requirements of its maximum senior secured net debt to EBITDA ratio (as defined in the facility agreement). For the fiscal periods ending December 2020 through June 2021, the maximum permitted ratio was decreased to 5.25 times from 6.5 times, with further step downs to 5.0 times from 5.5 times for the quarters ending September 2021 through March 2022 and to 4.75 times for the fiscal quarters ending June 2022 and thereafter. Moody's anticipates Realogy will maintain a comfortable margin below the maximum permitted levels over the next 12 to 15 months. Another provision requires early repayment of the term loan A and revolver due 2025 in March 2023 if Realogy does not refinance, replace, or extend the maturity of its 4.875% senior notes due June 2023 beyond May 2025 before March 2023. Similarly, if Realogy does not extend the maturity of its term loan B facility due February 2025 on or before November 2024, then the maturity of the extended term loan A and revolver springs to November 2024. Moody's expects Realogy will repay or refinance the senior notes due 2023 and the term loan B facility in advance of the required dates in order to preserve the extended 2025 term loan A and revolver maturity dates.Realogy Holdings Corp. (NYSE: RLGY) provides residential real estate services, encompassing franchise, brokerage, relocation, and title and settlement businesses as well as a mortgage joint venture. Realogy's brand portfolio includes Better Homes and Gardens® Real Estate, CENTURY 21®, Coldwell Banker®, Coldwell Banker Commercial®, Corcoran®, ERA®, and Sotheby's International Realty®. Moody's expects 2021 revenues of over $6 billion.Please see www.moodys.com for any updates on changes to the lead rating analyst and to the Moody's legal entity that has issued the rating.This publication does not announce a credit rating action. For any credit ratings referenced in this publication, please see the ratings tab on the issuer/entity page on www.moodys.com for the most updated credit rating action information and rating history. Edmond DeForest VP - Senior Credit Officer Corporate Finance Group Moody's Investors Service, Inc. 250 Greenwich Street New York, NY 10007 U.S.A. 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