CoreLogic Inc. is in discussions to improve the terms of its $5.3 billion debt offering due to a lack of strong investor interest, according to sources familiar with the matter. The company aims to make the sale more appealing to potential buyers by potentially adjusting pricing or other conditions, which could include offering a higher yield or other incentives.
This move comes as CoreLogic seeks to raise significant capital, and the lukewarm reception from the market has prompted a strategic reassessment. The property data provider, also known as Cotality, initially encountered slow demand for the riskiest part of its refinancing, a $1 billion second-lien secured notes offering. Orders for this portion, rated in the lowest CCC tier and pitched at a yield of at least 11%, struggled to reach the full amount, garnering about $760 million by Wednesday morning and increasing to only $830 million by early afternoon.
CoreLogic's decision to consider modifying the terms reflects a proactive approach to navigate a challenging market environment and secure the necessary financing. If finalized, the revised terms could create a more favorable environment for investors, potentially leading to a successful outcome for the debt issuance. The CoreLogic board and management are actively involved in these deliberations, prioritizing the company's financial health and strategic flexibility.
