MADISON, NJ-The home sales recovery will allow Realogy Holding Corp. to negotiate a lower rate next year on $1.9 billion in senior debt.
The real estate services company is seeking to further reduce the interest rate it pays on a $1.9-billion term loan it re-priced in February, according to Anthony Hull, Realogy's chief financial officer. It currently pays 3.5 percentage points more than the London interbank offered rate, with a 1% minimum on the benchmark, according to data compiled by Bloomberg. Realogy raised $1.08 billion in an initial public offering in October 2012 and used the proceeds to reduce its corporate debt.
“We can re-price our term loan next March, so we'd probably look at that opportunity to reduce our overall interest costs at that point,” Hull said.
A housing market recovery fueled Realogy's first profitable quarter in three years. Realogy has decreased its total interest expense to $255 million from $672 million a year ago, Hull notes. See story at Bloomberg News.
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