Realogy Recognizes Default Risk

Realogy Corp., a real estate services company owned by Apollo Management, has offered to exchange around $1.1 billion in existing bonds at a discount for new notes. The move is an attempt to stave off default, with the company saying in a regulatory filing: “There can be no assurance that we will not violate this or other covenants under our senior secured credit facility or that this will not result in a default under our indentures.”

Realogy reported $209 million in losses over the first three quarters of 2008. It was acquired by Apollo for $6.6 billion in April 2007.