RealPage cuts spread on $2.75 billion term loan to Libor plus 325 bps

By Sara Rosenberg

New York, Feb. 18 – RealPage Inc. lowered pricing on its $2.75 billion seven-year first-lien term loan B (B2/B/B+) to Libor plus 325 basis points from talk in the range of Libor plus 350 bps to 375 bps, according to a market source.

Also, the company added a 25 bps step-down to the first-lien term loan at 4.6x first-lien net leverage, reduced the Libor floor to 0.5% from 0.75% and tightened the original issue discount to 99.75 from 99.5, the source said.

The first-lien term loan still has 101 soft call protection for six months, amortization of 1% per annum, and a ticking fee of half the margin from days 61 to 90 and the full margin thereafter.

The company’s $4 billion of senior secured credit facilities also include a $250 million revolver (B2/B/B+) and a $1 billion privately placed second-lien term loan (//CCC+).

Goldman Sachs Bank USA, Credit Suisse Securities (USA) LLC, UBS Investment Bank, Apollo, Barclays, BMO Capital Markets, Deutsche Bank Securities Inc., KKR Capital Markets, Nomura Securities International Inc., RBC Capital Markets, TB Credit, Truist Securities Inc., Wells Fargo Securities LLC and Stone Point are the bookrunners on the deal.

Recommitments were scheduled to be due at 1 p.m. ET on Thursday, the source added.

Proceeds will be used to help fund the buyout of the company by Thoma Bravo for $88.75 in cash per share. The transaction is valued at $10.2 billion, including net debt.

Other funds for the buyout will come from $7.36 billion of equity.

Closing is expected in the second quarter, subject to customary conditions, including RealPage shareholder approval, expiration or early termination of the applicable waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976, and receipt of other required regulatory approvals.

RealPage is a Richardson, Tex.-based provider of software and data analytics to the real estate industry.

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