RentPath reworks first- and second-lien term loan sizes and pricing

By Sara Rosenberg

New York, Dec. 5 – RentPath Inc. upsized its seven-year first-lien term loan to $505 million from $475 million and downsized its eight-year second-lien term loan to $170 million from $200 million, according to a market source.

Also, pricing on the first-lien term loan was increased to Libor plus 525 basis points from Libor plus 475 bps, and pricing on the second-lien term loan was lifted to Libor plus 900 bps from Libor plus 850 bps, the source said.

In addition, the original issue discount on the second-lien term loan widened to 96 from 98.

Furthermore, the 101 soft call protection on the first-lien term loan was extended to one year from six months, and the call protection on the second-lien term loan was revised to non-callable for one year, then at 103 in year two and 101.5 in year three from 102 in year one and 101 in year two, the source continued.

The first-lien term loan still has a 1% Libor floor and an original issue discount of 99, and the second-lien term loan still has a 1% Libor floor.

Other changes made included increasing the excess cash flow sweep on the first-lien term loan to 75% with step-downs and modifying the 50 bps MFN provision to apply for life and to the entire incremental facility.

The company also reduced the incremental free and clear basket to $75 million from $100 million and the applicable first-lien net leverage ratio threshold to 4.25 times, the secured net leverage ratio threshold to 6.25 times and the total net leverage threshold to 6.50 times.

The company’s $725 million credit facility provides for a $50 million five-year revolver (B1/B+) as well.

Recommitments are due at 5 p.m. ET on Tuesday, the source added.

RBC Capital Markets Inc., UBS AG, Nomura and Macquarie Capital (USA) Inc. are the leads on the deal.

Proceeds will be used to help fund Providence Equity Partners’ purchase of a stake in the company from TPG and to refinance existing debt.

Under the agreement, Providence and TPG will own equal shares of RentPath, with management continuing to also have a stake in the company.

Closing is expected around mid-December.

First-lien leverage is 4.4 times based on 2014 estimated EBITDA.

RentPath is a Norcross, Ga.-based vertical search company for apartment and home renters.

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