CoStar draws $745 million under its $750 million five-year revolver

By Sarah Lizee

Olympia, Wash., March 26 – CoStar Group, Inc. borrowed $745 million under its $750 million five-year revolving credit facility on Wednesday, according to an 8-K filing with the Securities and Exchange Commission.

Interest is Libor plus 125 basis points, subject to adjustment based on the company’s first-lien secured leverage ratio.

The company expects to use the proceeds of the borrowing to fund the pending acquisition of RentPath Holdings, Inc., as well as other potential strategic acquisitions, and for other working capital and general corporate purposes.

The increased cash position resulting from the borrowings allows for greater financial flexibility in light of current uncertainty in the global markets resulting from the Covid-19 outbreak.

The proceeds from the borrowings are being held on the company’s balance sheet, resulting in total cash, cash equivalents and restricted cash of about $1.9 billion as of Wednesday.

CoStar is a Washington, D.C.-based provider of commercial real estate information, analytics and marketplaces. RentPath is an Atlanta-based vertical search company for apartment and home renters.

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