RentPath adjusts issue prices on first- and second-lien term loans

By Sara Rosenberg

New York, Dec. 11 – RentPath Inc. widened the original issue discount on its $505 million seven-year first-lien term loan to 98 from 99 and on its $170 million eight-year second-lien term loan to 91 from revised talk of 96 and initial talk of 98, according to a market source.

Pricing on the first-lien term loan is Libor plus 525 basis points with a 1% Libor floor, and the second-lien term loan is priced at Libor plus 900 bps with a 1% Libor floor.

Included in the first-lien term loan is 101 soft call protection for one year, and the second-lien loan is non-callable for one year, then at 103 in year two and 101.5 in year three.

Earlier in syndication, the first-lien term loan was upsized from $475 million, pricing was raised from Libor plus 475 bps and the call protection was extended from six months, and the second-lien term loan was downsized from $200 million, pricing was flexed from Libor plus 850 bps, and the call protection was modified from 102 in year one and 101 in year two.

Some other revisions made earlier included increasing the excess cash flow sweep on the first-lien term loan to 75% with step-downs, changing the 50 bps MFN provision to apply for life and to the entire incremental facility, and reducing 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 $725 million credit facility also provides for a $50 million five-year revolver.

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. At closings, Providence and TPG will own equal shares of the company, with management continuing to also have a stake.

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

Closing is expected around mid-December.

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

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