RentPath seeks court approval to lift DIP facility by $20.83 million

By Sarah Lizee

Olympia, Wash., Feb. 18 – RentPath Holdings, Inc. is seeking court approval of an amendment to its $74.07 million debtor-in-possession facility that would increase the amount by $20.83 million, according to a motion filed Wednesday with the U.S. Bankruptcy Court for the District of Delaware.

A hearing is scheduled for March 3.

An amendment to the facility requires the consent of 50.1% of the DIP lenders, which the company obtained prior to filing the motion.

The company said the additional financing will provide the debtors with necessary liquidity on the same terms as the existing DIP loans.

“The regulatory approval process in connection with the stalking horse purchase agreement was extensive and lengthy and, unfortunately, in addition to prolonging these Chapter 11 cases, resulted in the Federal Trade Commission suing to block the transaction,” the company said.

“In light of, among other things, the FTC’s decision, the debtors terminated the stalking horse purchase agreement on Dec. 29 and are in the process of evaluating their strategic options.

“Due to the protracted nature of these Chapter 11 cases and the costs attendant thereto, unforeseen market factors, and the stalking horse bidder’s decision not to further extend the outside date under the stalking horse purchase agreement – which would have provided the debtors with an additional $7.5 million of liquidity – the debtors need immediate access to additional financing to fund ongoing operations and administrative costs.”

The company said it is also in the process of collecting the lender consents required to extend the maturity date of the DIP facility to June 30 from Feb. 28. The debtors currently have consent of 71% of the lenders, but the amendment requires consent from 100%.

Royal Bank of Canada is the DIP financing agent, as previously reported.

Interest accrues at a rate of Libor plus 700 basis points.

RentPath is an Atlanta-based vertical search company for apartment and home renters. The company filed bankruptcy on Feb. 12, 2020 under Chapter 11 case number 20-10312.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.