JPMorgan, Credit Suisse and Bear Stearns have committed financing to back the $9 billion all-cash buyout of Realogy by Apollo Management. The company announced Dec. 17 it would be acquired by Apollo for approximately $9 billion, including the assumption or repayment of approximately $1.6 billion in debt and $750 million of other liabilities. Shareholders will receive $30 for each share of Realogy. Further terms of the debt financing could not be determined. Apollo will also provide $2 billion of equity to complete the transaction.
Standard & Poor's lowered Realogy's corporate credit rating to BB+ from BBB and placed the rating on CreditWatch with negative implications. The company was spun-off from Cendant in July after it divested its interest in Travelport and Wyndham Worldwide Corp. Travelport was acquired by The Blackstone Group at that time for approximately $4.3 billion. That deal was backed by a Credit Suisse, Lehman Brothers and UBS-led $2.6 billion senior secured credit facility (CIN, 7/21). Travelport announced Dec. 7 it would acquire Worldspan for approximately $1.4 billion. Wyndham Worldwide was spun off into a public company and it announced in August it received $750 million in proceeds from Cendant's sale of Travelport, which was used to pay down existing debt.
Based in New York, Realogy is a real estate franchisor with brands including CENTURY 21, Coldwell Banker and Sotheby's International Realty. Calls to a Realogy spokesman were not returned.