RentPath cuts term B to $400 million, ups spread to Libor plus 500 bps

By Sara Rosenberg

New York, May 20 - RentPath Inc. downsized its seven-year term loan B to $400 million from $425 million and increased pricing to Libor plus 500 basis points from talk of Libor plus 400 bps to 425 bps, according to a market source.

Also, the Libor floor was lifted to 1.25% from 1%, the original issue discount widened to 98 from 99, and the soft call protection was extended to 18 months from one year, the source said.

Furthermore, a maintenance covenant with step-downs was added, opening at 5 times maximum net first-lien leverage, the source said. Previously, the loan only had incurrence covenants.

The company's now $445 million credit facility (B2/B), down from $470 million, also includes a $45 million five-year revolver.

Recommitments are due at 5 p.m. ET on Tuesday, the source added.

J.P. Morgan Securities LLC is the lead bank on the deal.

Proceeds will be used to refinance existing debt and fund a distribution to shareholders.

RentPath is a Norcross, Ga.-based digital marketplace for apartment rentals.

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