Apollo's Realogy May Default, Offers to Exchange Debt (Update1) http://www.bloomberg.com/apps/news?pid=20601087&sid=aytFNmXoFWR4&refer=home By Caroline Salas and Pierre Paulden Nov. 14 (Bloomberg) -- Realogy Corp., owner of the Century 21 and Coldwell Banker brands, is at risk of violating the terms of its bank loans and offered to exchange bonds at a discount for new debt. A drop in home sales and prices ``will negatively affect the quarterly calculation of our senior secured leverage ratio,'' Parsippany, New Jersey-based Realogy said in a filing dated yesterday. ``There can be no assurance that we will not violate this or other covenants.'' Leon Black's buyout firm Apollo Management LP bought Realogy for $6.6 billion in April 2007. U.S. home prices tumbled the most in at least 17 years in August and foreclosures increased to the highest on record in the third quarter, according to reports last month from the Federal Housing Finance Agency and RealtyTrac, a seller of foreclosure data. Realogy is giving its noteholders the option to swap their securities at a discount for up to $500 million in principal amount of new second lien loans that will mature in 2014, according to a press release dated yesterday. Holders of Realogy's $875 million of 12.375 percent senior subordinated notes due in 2015 can exchange their debt at a rate of as much as 36 cents on the dollar, the statement said. Investors holding its $1.7 billion of 10.5 percent senior notes due in 2014 can exchange their securities for as much as 50 cents of new loans. Owners of Realogy's so-called pay-in-kind toggle notes maturing in 2014 can swap their debt at a rate of 47 cents on the dollar.