Apollo May Invest Up to $150 Million in Realogy After 2008 Loss

Daniel Taub:

Apollo Management LP, the buyout firm led by Leon Black, agreed to invest as much as $150 million in Realogy Corp. after the real estate broker reported a 2008 loss of $1.91 billion.

Realogy, owner of the Century 21 and Coldwell Banker agencies, said Apollo will provide the "equity infusion" only if necessary and that it may not need the full amount. Realogy said it remains in compliance with debt agreements, according to a regulatory filing yesterday.

"This is very powerful support to us during these challenging times and is not available to most companies or our competitors," Chief Financial Officer Anthony E. Hull said on a conference call with analysts and investors.

Realogy reported the loss after writing down $1.79 billion in assets and investments as its brokers were hurt by the worsening housing slump. Apollo acquired Realogy for $6.8 billion in April 2007, the height of the buyout boom, and has been battered by the real estate recession. Realogy said yesterday home sale transactions slid 18 percent last year and the average home sale price fell as much as 10 percent from 2007.

Chief Executive Officer Richard A. Smith called speculation that Realogy will file for bankruptcy protection "completely false and without merit." Such talk is the "unwarranted, wishful thinking of our competitors," Smith said on the conference call.