Company: HOUS
Filing Date: 2025-11-05
Form Type: 10-Q
Source: 0001398987-25-000116
Chunk: 153

Company: Anywhere Real Estate Inc.
Filing Date: 2025-11-05
Form: 10-Q
Item: Item 8
Chunk 153
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 strongest in the second and third quarters of the calendar year. A significant portion of the expenses we incur in our real estate brokerage operations are related to marketing activities and commissions and therefore, are variable. However, many of our other expenses, such as interest payments, facilities costs and certain personnel-related costs, are fixed and cannot be reduced during the seasonal fluctuations in the business. While this seasonality generally increases our need to borrow under the Revolving Credit Facility during the first third of the year, our need for borrowings may be heightened deeper into the year during periods of industry downturn.

Financial Obligations

See Note 4, "Short and Long-Term Debt", to the Condensed Consolidated Financial Statements, for information on the Company's indebtedness as of September 30, 2025.

Covenants under the Senior Secured Credit Agreement and Indentures; Events of Default

The Senior Secured Credit Agreement and the indentures governing the Unsecured Notes and Senior Secured Second Lien Notes contain various covenants that limit (subject to certain exceptions) Anywhere Group’s ability to, among other things:

•incur or guarantee additional debt or issue disqualified stock or preferred stock;

•pay dividends or make distributions to Anywhere Group’s stockholders, including Anywhere;

•repurchase or redeem capital stock;

•make loans, investments or acquisitions;

•incur restrictions on the ability of certain of Anywhere Group's subsidiaries to pay dividends or to make other payments to Anywhere Group;

•enter into transactions with affiliates;

•create liens;

•merge or consolidate with other companies or transfer all or substantially all of Anywhere Group's and its material subsidiaries' assets;

•transfer or sell assets, including capital stock of subsidiaries; and

•prepay, redeem or repurchase subordinated indebtedness.

As a result of the covenants to which we remain subject, we are limited in the manner in which we conduct our business and we may be unable to engage in favorable business activities or finance future operations or capital needs. In addition, the Senior Secured Credit Agreement requires us to maintain a senior secured leverage ratio. 

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Senior Secured Leverage Ratio applicable to our Senior Secured Credit Facility

The senior secured leverage ratio is tested quarterly and may not exceed 4.75 to 1.00. The senior secured leverage ratio is measured by dividing Anywhere Group's total senior secured net debt by the trailing four quarters EBITDA calculated on a Pro Forma Basis, as those terms are defined in