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Realogy restructuring debt

Plan allows debt investors to get stock if company completes IPO

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CLARIFICATION: Inman News has changed some language in this article to more specifically identify Realogy's creditors as "debt investors" and "senior lenders."Franchise giant Realogy Corp. is in the midst of a debt restructuring that, if the company chooses to go public again, could allow it to shed $2 billion in bond debt by exchanging it for shares of company common stock. If Realogy does pursue an initial public offering, private equity firm Apollo Management could reportedly convert enough Realogy bond debt into shares to become the majority stakeholder in the company. Realogy -- whose brands include Century 21, Coldwell Banker and Better Homes and Gardens Real Estate -- was acquired by an affiliate of Apollo Management in April 2007 and taken private in a leveraged deal that left the company deeply in debt. The deal was valued at more than $8 billion at the time, but Realogy borrowed most of the money needed to buy the company's publicy traded stoc...