Moody’s assigns RealPage B3, loan B2

Moody’s Investors Service said it gave a B3 corporate family rating and a B3-PD probability default rating to first-time issuer RealPage, Inc.

Moody’s also assigned B2 ratings to RealPage’s proposed $2.75 billion first-lien term loan and $250 million first-lien revolving facility.

“RealPage’s B3 CFR rating reflects the company’s elevated debt to EBITDA ratio while also considering its sound market position in the niche segment of software solutions for rental housing. Moody’s estimates that the company’s debt to EBITDA ratio will be close to 15x when the transaction closes but would decline to 7.5-8x by YE 2022 if the management achieves the forecast cost savings,” the agency said in a press release.

The proceeds from the new first-lien debt and a new $1 billion second-lien term loan will be used to partially fund private equity firm’s Thoma Bravo’s purchase of RealPage

The outlook is stable. The outlook reflects expectations that demand for RealPage’s products and service will grow, operating earnings will remain healthy and its liquidity profile will continue to be sound, Moody’s said.

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