Company: HOUS
Filing Date: 2025-12-02
Form Type: DEFM14A
Source: 0001628280-25-054793
Chunk: 75

Company: Anywhere Real Estate Inc.
Filing Date: 2025-12-02
Form: DEFM14A
Chunk 75
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In the event that the debt financing contemplated by the debt commitment letter is not available, there is a risk that other financing may not be available on acceptable terms, in a timely manner or at all. Although Compass’ obligation to consummate the merger is not conditioned upon consummation of the debt financing, if Compass is unable to obtain the debt financing (or other financing arrangements in lieu thereof), the merger may be delayed or not completed, in which case Compass would be in breach of its obligations under the merger agreement. See the section entitled “The Merger Agreement—Financing Obligations” beginning on page 117 of this joint proxy statement/prospectus for more information.

The definitive documentation governing the indebtedness that may be incurred in connection with the merger is expected to contain various covenants that impose restrictions on Compass and certain of its subsidiaries that may affect Compass’ ability to operate its business.

The definitive documentation that will govern the indebtedness expected to be incurred in connection with the merger is expected to contain various affirmative and negative covenants that will, subject to certain significant exceptions, restrict Compass’ ability and the ability of certain of its subsidiaries to, among other things, incur liens on their property, incur additional indebtedness, enter into sale and lease-back transactions, make loans, advances or other investments, make non-ordinary course asset sales, declare or pay dividends, repay junior or contractually subordinated debt and/or merge or consolidate with any other person. In addition, such definitive documentation is expected to contain a financial maintenance covenant that will require the combined company to maintain compliance with a financial ratio as of the last day of each applicable fiscal quarter. The ability of the combined company and its subsidiaries to comply with these provisions may be affected by events beyond their control. Failure to comply with these covenants could result in an event of default, which, if not cured or waived, could accelerate the combined company’s repayment obligations.

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In connection with the merger, Compass will assume certain indebtedness of Anywhere, and may incur significant additional indebtedness, which could adversely affect Compass’ business and operations, including by decreasing Compass’ business flexibility and significantly increasing its interest expense, among other things.

Compass had no consolidated long-term debt as of September 30, 2025. Compass’ pro forma long-term debt as of September 30, 2025, after giving effect to the merger and the anticipated assumption, incurrence and extinguishment of indebtedness in connection therewith, will