CoreLogic closes $5.25B debt deal at some of the year's highest yields
What's the deal? CoreLogic, the property data provider that trades as Cotality, raised $5.25 billion in a debt sale, amending its terms and offering some of the year's highest yields to counter tepid investor demand.
The breakdown: The deal split into a $2.8 billion term loan, priced at 4.25 percentage points over the benchmark and discounted to 98 cents on the dollar, and a $1.65 billion first-lien junk-bond sale priced at par to yield 9%, according to a person familiar with the matter.
Why now? The company amended the terms mid-process in response to lukewarm investor appetite. The concessions — a discount on the loan and a 9% bond yield — reflect what it took to get the financing across the line.
How big is it? The raise sits in the 99.9th percentile among US real estate post-IPO debt rounds over the trailing 48 months, out of 417 comparable deals — placing it near the very top of the range for the sector.
The signal: The size of the raise shows appetite for a scaled property data business, but the pricing tells the harder story. When one of the year's largest real estate debt deals has to sweeten terms to clear, it points to a market demanding steeper compensation for risk.
Read more: Bloomberg Law
Image credit: futureatlas.com
