CoStar completes $225 million credit facility at Libor plus 200 bps

By Sara Rosenberg

New York, Feb. 23 - CoStar Group Inc. closed on a $225 million five-year credit facility that is priced at Libor plus 200 basis points, according to an 8-K filed with the Securities and Exchange Commission on Thursday.

J.P. Morgan Securities LLC acted as the bookrunner and lead arranger on the deal that was completed on Feb. 16.

The facility consists of a $175 million term loan and a $50 million revolver.

Amortization on the term loan is 5% in year one, 10% in year two, 15% in year three, 20% in year four and 50% in year five.

Covenants include a debt service coverage ratio of at least 1.5 to 1.0 and a maximum total leverage ratio of 3.25 to 1.00 during the first two full fiscal quarters after the closing date, 3.00 to 1.00 during the third and fourth full fiscal quarters after the closing date, 2.75 to 1.00 during the period from the fifth to the eighth full fiscal quarter after the closing date and 2.50 to 1.00 thereafter.

Proceeds will be used to help fund the purchase of LoopNet Inc. and for general corporate purposes. The facility will become effective upon the closing of the acquisition.

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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