CoStar outlines expected pricing on $465 million credit facility

By Sara Rosenberg

New York, May 13 - CoStar Group Inc. said in an S-4 filed with the Securities and Exchange Commission on Friday that its proposed $415 million seven-year first-lien term loan is expected to be priced at Libor plus 350 basis points with a 1.25% Libor floor.

In addition, the company expects its $50 million five-year first-lien revolver to be priced at Libor plus 300 bps.

J.P. Morgan Securities LLC is the bookrunner and lead arranger on the $465 million credit facility.

Amortization on the term loan is 1%.

There is a $100 million accordion feature.

Proceeds will be used to help fund the acquisition of LoopNet Inc. for $16.50 in cash and 0.03702 shares of CoStar common stock per share, 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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