Short And Long-Term Debt (Tables)

6 Months Ended

Jun. 30, 2018

Total indebtedness is as follows:



	June 30, 2018		December 31, 2017
Senior Secured Credit Facility:
Revolving Credit Facility	$	312	$	70
Term Loan B	1,058		1,063
Term Loan A Facility:
Term Loan A	740		390
Term Loan A-1	—		339
4.50% Senior Notes	446		444
5.25% Senior Notes	547		546
4.875% Senior Notes	497		496
Total Short-Term & Long-Term Debt	$	3,600	$	3,348
Securitization Obligations:
Apple Ridge Funding LLC	$	247	$	181
Cartus Financing Limited	14		13
Total Securitization Obligations	$	261	$	194

Schedule of Debt

As of June 30, 2018, the Company’s borrowing arrangements were as follows:



	Interest Rate	Expiration Date	Principal Amount		Unamortized Discount and Debt Issuance Costs		Net Amount
Senior Secured Credit Facility:
Revolving Credit Facility (1)	(2)	February 2023	$	312	$ *		$	312
Term Loan B	(3)	February 2025	1,075		17		1,058
Term Loan A Facility:
Term Loan A	(4)	February 2023	745		5		740
Senior Notes	4.50%	April 2019	450		4		446
Senior Notes	5.25%	December 2021	550		3		547
Senior Notes	4.875%	June 2023	500		3		497
Securitization obligations: (5)
Apple Ridge Funding LLC (6)		June 2019	247		*		247
Cartus Financing Limited (7)		August 2018	14		*		14
Total (8)			$	3,893	$	32	$	3,861

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*	The debt issuance costs related to our Revolving Credit Facility and securitization obligations are classified as a deferred financing asset within other assets.

(1)

As of June 30, 2018, the Company had $1,400 million of borrowing capacity under its Revolving Credit Facility, leaving $1,088 million of available capacity. The Revolving Credit Facility expires in February 2023, but is classified on the balance sheet as current due to the revolving nature of the facility. On August 1, 2018, the Company had $270 million in outstanding borrowings under the Revolving Credit Facility, leaving $1,130 million of available capacity.

(2)

Interest rates with respect to revolving loans under the Senior Secured Credit Facility at June 30, 2018 were based on, at the Company's option, (a) adjusted London Interbank Offering Rate ("LIBOR") plus an additional margin or (b) JP Morgan Chase Bank, N.A.'s prime rate ("ABR") plus an additional margin, in each case subject to adjustment based on the then current senior secured leverage ratio. Based on the previous quarter senior secured leverage ratio, the LIBOR margin was 2.25% and the ABR margin was 1.25% for the three months ended June 30, 2018.


(3)	The Term Loan B provides for quarterly amortization payments totaling 1% per annum of the original principal amount. The interest rate with respect to term loans under the Term Loan B is based on, at the Company’s option, (a) adjusted LIBOR plus 2.25% (with a LIBOR floor of 0.75%) or (b) ABR plus 1.25% (with an ABR floor of 1.75%).

(4)

The Term Loan A provides for quarterly amortization payments, which commence on June 30, 2018, totaling per annum 2.5%, 2.5%, 5.0%, 7.5% and 10.0% of the original principal amount of the Term Loan A, with the last amortization payment to be made on February 8, 2023. The interest rates with respect to term loans under the Term Loan A are based on, at the Company's option, (a) adjusted LIBOR plus an additional margin or (b) ABR plus an additional margin, in each case subject to adjustment based on the then current senior secured leverage ratio. Based on the previous quarter senior secured leverage ratio, the LIBOR margin was 2.25% and the ABR margin was 1.25% for the three months ended June 30, 2018.


(5)	Available capacity is subject to maintaining sufficient relocation related assets to collateralize these securitization obligations.


(6)	In June 2018, Realogy Group extended the existing Apple Ridge Funding LLC securitization program utilized by Cartus until June 2019. As of June 30, 2018, the Company had $250 million of borrowing capacity under the Apple Ridge Funding LLC securitization program leaving $3 million of available capacity.


(7)	Consists of a £10 million revolving loan facility and a £5 million working capital facility. As of June 30, 2018, the Company had $20 million of borrowing capacity under the Cartus Financing Limited securitization program leaving $6 million of available capacity.


(8)	Not included in this table is the Company's Unsecured Letter of Credit Facility which had a capacity of $74 million with $65 million utilized at a weighted average rate of 3.24% at June 30, 2018.

Schedule of Maturities of Long-term Debt



Year	Amount
Remaining 2018 (a)	$	326
2019	480
2020	44
2021	613
2022	81

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(a)

Remaining 2018 includes amortization payments totaling $9 million and $5 million for the Term Loan A and Term Loan B facilities, respectively, as well as $312 million of revolver borrowings under the Revolving Credit Facility which expires in February 2023, but is classified on the balance sheet as current due to the revolving nature of the facility. The current portion of long term debt of $788 million shown on the condensed consolidated balance sheet consists of $446 million of 4.50% Senior Notes due April 2019, four quarters of amortization payments totaling $19 million and $11 million for the Term Loan A and Term Loan B facilities, respectively, and $312 million of revolver borrowings under the Revolving Credit Facility. The Company is evaluating different alternatives to repay the 4.50% Senior Notes due in April 2019 including refinancing or using existing available liquidity.

Interest Rate Table for Revolving Credit Facility



Senior Secured Leverage Ratio	Applicable LIBOR Margin	Applicable ABR Margin
Greater than 3.50 to 1.00	2.50%	1.50%
Less than or equal to 3.50 to 1.00 but greater than or equal to 2.50 to 1.00	2.25%	1.25%
Less than 2.50 to 1.00 but greater than or equal to 2.00 to 1.00	2.00%	1.00%
Less than 2.00 to 1.00	1.75%	0.75%

Interest Rate Table for Term Loan A



Senior Secured Leverage Ratio	Applicable LIBOR Margin	Applicable ABR Margin
Greater than 3.50 to 1.00	2.50%	1.50%
Less than or equal to 3.50 to 1.00 but greater than or equal to 2.50 to 1.00	2.25%	1.25%
Less than 2.50 to 1.00 but greater than or equal to 2.00 to 1.00	2.00%	1.00%
Less than 2.00 to 1.00	1.75%	0.75%

Expiration Capacity Table for Unsecured Letter of Credit Facilities

The facility's expiration dates are as follows:



Capacity (in millions)	Expiration Date
$8	September 2018
$66	December 2019