CoreLogic Inc., operating as Cotality, is encountering significant challenges in attracting investors for the most speculative portion of its $5.3 billion refinancing debt. The company's proposed $1 billion second-lien secured notes, rated in the lowest CCC tier, has seen tepid demand.
As of Wednesday morning, orders for CoreLogic's second-lien secured notes amounted to approximately $760 million. By early afternoon, this figure only slightly increased to $830 million. The bond is being marketed with a substantial yield of at least 11% to entice buyers, indicating the struggle in securing commitments.
This lukewarm reception suggests that CoreLogic may need to offer more attractive terms, such as a higher yield or other incentives, to fully subscribe its riskiest debt. The company had previously engaged in significant debt activity in 2016, including borrowing $525 million on its term loan facility and redeeming $393 million in 7.25% Senior Notes due 2021, showcasing its history of managing substantial financial obligations.
