Centerbridge Partners Closes Deal on Realogy’s Title Resources Guaranty Company
Posted on 03/30/2022
Realogy Holdings Corporation (NYSE: RLGY) announced the closing of the previously announced sale of Title Resources Guaranty Company, Realogy’s title insurance underwriter, to an affiliate of Centerbridge Partners, L.P., a private investment management firm. Realogy received US$ 210 million in cash and a 30% equity interest in the newly formed limited partnership joint venture that indirectly owns the Title Insurance Underwriter.
Realogy’s portion of future minority interest earnings from its 30% common equity stake will be reported within the company’s Realogy Title Group segment, which includes the company’s title, escrow, and settlement services business and mortgage origination joint venture.
Realogy continues to own and operate its national scale title settlement and escrow services that helped agents and consumers close 220,000 transactions in 2021.
Realogy’s title and escrow services operate across 44 states under 45 different brand names and in 2021, represented the majority of Operating EBITDA generated by the Realogy Title Group segment, excluding the company’s share of equity earnings from its mortgage origination joint venture.
The deal was announced on October 6, 2021.
Advisors
Goldman Sachs & Co. LLC served as financial advisor to Realogy, and Gibson, Dunn & Crutcher served as legal advisor to Realogy. Bank of America served as financial advisor to Centerbridge and Willkie Farr & Gallagher served as legal advisor to Centerbridge.