RealPage secures $600 million revolver, $600 million in term loans

By Sarah Lizee

Olympia, Wash., Sept. 5 – RealPage, Inc. entered into an amended and restated credit agreement on Thursday, providing for an up to $600 million secured revolver due Sept. 5, 2024 and a $600 million of secured term loans, according to an 8-K filing with the Securities and Exchange Commission.

Wells Fargo is acting as lead arranger and administrative agent for the financing.

The facilities mature Sept. 5, 2024.

The term loans consist of $300 million extended on the closing date and $300 million in commitments for delayed-draw term loans.

The delayed-draw term loans may be drawn, subject to the satisfaction of some conditions, on or prior to Sept. 5, 2020.

The revolver has a sublimit of $10 million for letters of credit and a sublimit of $20 million for swingline loans.

The amended credit agreement refinances the company’s outstanding term loans under the original agreement. As of Thursday, there were no revolving loans and $300 million in outstanding principal amount of term loans.

At any time after the earlier to occur of the funding of the delayed-draw term loans and the delayed-draw funding deadline, the company may obtain additional term loan commitments and/or additional revolving commitments of up to the greater of $250 million and 100% of consolidated EBITDA for the most recently ended four fiscal quarter period, plus an amount that would not cause the company’s consolidated senior secured net leverage ratio to exceed 3.5 to 1.0, calculated on a pro forma basis.

Proceeds may be used for working capital and general corporate purposes.

Interest is Libor plus 100 basis points to 200 bps, depending on the company’s consolidated net leverage ratio.

Unused commitments under the revolver and delayed-draw term loan are subject to a commitment fee or a ticking fee, as applicable, to be paid in arrears on the last day of each fiscal quarter, ranging from 15 bps 35 bps per annum determined based on the company’s consolidated net leverage ratio as of the last day of the most recently ended fiscal quarter of the company.

The company is also required to maintain compliance with a consolidated net leverage ratio of 5 to 1 or, at the company’s election following certain material acquisitions, 5.5 to 1.0, measured as of the last day of each fiscal quarter.

The company must also comply with a consolidated senior secured net leverage ratio, measured as of the last day of each fiscal quarter, of not greater than 3.75 to 1.00 or, at the company’s election following certain material acquisitions, 4.25 to 1.00, measured as of the last day of each fiscal quarter, and a consolidated interest coverage ratio of 3 to 1 measured as of the last day of each fiscal quarter.

The Carrollton, Tex., company provides on-demand products and services to apartment communities and single-family rentals across the United States.

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