CoreLogic Inc., operating as Cotality, is reportedly in discussions to enhance the terms of its substantial $5.3 billion debt offering. This move comes in response to tepid investor demand for the riskiest, $1 billion second-lien secured notes, which are part of the larger refinancing package.
Initially, institutional investors showed weak interest, with only about $760 million in orders for the $1 billion junk-debt offering by Wednesday morning. This figure slowly increased to $830 million by early afternoon. The bond, rated in the lowest CCC tier, was being marketed with a high yield of at least 11% to attract buyers, but even this substantial return has not generated sufficient demand.
The company is under pressure to finalize this financing, crucial for its ongoing operations and strategic initiatives. The decision to consider modifying terms reflects CoreLogic's proactive approach to navigating a challenging market environment and securing the necessary capital. Deliberations involve the CoreLogic board and management, prioritizing the company's financial health and strategic flexibility. This situation highlights the hesitations some investors have towards riskier debt even with high yields.
