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RentPath asset sale procedures, $74.07 million DIP facility approved
By Caroline Salls
Pittsburgh, March 10 – RentPath Holdings, Inc. received court approval of the bidding procedures for the proposed sale of its assets, according to an order filed Tuesday with the U.S. Bankruptcy Court for the District of Delaware.
As previously reported, RentPath filed bankruptcy after entering an agreement under which CoStar Group, Inc. affiliate CSGP Holdings, LLC will acquire RentPath’s business for $587.5 million.
CoStar will serve as the stalking horse bidder in the court-supervised auction and sale process. If it is not ultimately the high bidder, RentPath will pay CoStar a break-up fee equal to 2% of the cash purchase price.
RentPath said the first-lien lenders supporting the restructuring have provided the company with a clear path to emergence while pursuing CoStar’s bid or any other higher or otherwise better offers by agreeing to backstop the sale process with a binding credit bid of $492.7 million of their first-lien claims.
Under the approved procedures, competing bids are due by 4 p.m. ET on March 25.
An auction will be held on March 31, if necessary.
The sale hearing will be held in conjunction with a Chapter 11 plan confirmation hearing on June 9.
In addition, RentPath obtained final court approval to access $74.07 million in debtor-in-possession financing from its existing lenders.
The company said the financing will allow all RentPath sites and services to operate as usual throughout the asset sale process.
Royal Bank of Canada is the DIP financing agent.
The facility will mature on the earlier of Aug. 31, 2020 and the effective date of a plan of reorganization, subject to two three-month extensions.
Interest will accrue at a rate of Libor plus 700 basis points.
RentPath is an Atlanta-based vertical search company for apartment and home renters. The company filed bankruptcy on Feb. 12 under Chapter 11 case number 20-10312.
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