CoStar to get $465 million credit facility for purchase of LoopNet

By Sara Rosenberg

New York, April 28 - CoStar Group Inc. plans on getting a $465 million credit facility to help fund its acquisition of LoopNet Inc., according to an 8-K filed with the Securities and Exchange Commission on Thursday.

J.P. Morgan Securities LLC is the bookrunner and lead arranger on the deal.

The credit facility consists of a $415 million seven-year first-lien term loan and a $50 million five-year first-lien revolver.

Amortization on the term loan is 1%.

Under the agreement, LoopNet shareholders will receive $16.50 in cash and 0.03702 shares of CoStar common stock per shrae, representing a total equity value of about $860 million and an enterprise value of $762 million.

Closing on the transaction is expected to take place by the end of this year, subject to approval by the shareholders of LoopNet and antitrust clearance.

CoStar is a Washington, D.C.-based commercial real estate information company. LoopNet is a San Francisco-based online commercial real estate marketplace.

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