Moody’s rates RentPath loans B1, Caa1

Moody's Investors Service said it affirmed RentPath, Inc.’s corporate family rating at B2 and assigned a B1 rating to the proposed first-lien credit facility consisting of a $50 million five-year revolver and a $475 million seven-year first-lien term loan.

The proposed $200 million eight-year second-lien term loan was assigned a Caa1 rating.

The outlook remains stable.

Proceeds, existing cash on the balance sheet and $272 million of cash equity from Providence Equity Partners LLC will be used to fund the purchase of a 48.7% interest in RentPath and to redeem the existing debt in addition to paying fees and expenses. Existing owner TPG Partners VI, LP will continue to own an equal stake of 48.7% in the company going forward.

The ratings on the existing outstanding debt will be withdrawn following repayment.

The transaction is anticipated to increase debt by roughly $280 million and increase interest expense by about $20 million annually, although final pricing has not been determined as of this publication date.

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