CoStar Group plans $625 million credit facility at Libor plus 200 bps

By Sara Rosenberg

New York, March 3 - CoStar Group Inc. has received a commitment for a $625 million five-year senior secured credit facility, according to an 8-K filed with the Securities and Exchange Commission on Monday.

The facility consists of a $225 million revolver and a $400 million term loan, both initially priced at Libor plus 200 basis points.

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

J.P. Morgan Securities LLC, Bank of America Merrill Lynch, SunTrust Robinson Humphrey Inc. and Wells Fargo Securities LLC are the joint lead arrangers and joint bookrunners on the deal.

Proceeds from the credit facility and cash on hand will be used to fund the acquisition of Apartments.com from Classified Ventures LLC for $585 million in cash, to refinance an existing credit facility and for working capital and other general corporate purposes.

Closing is expected in the second quarter, subject to customary conditions, including expiration or early termination of the waiting period under the Hart-Scott-Rodino Antitrust Improvements Act.

CoStar is a Washington, D.C.-based provider of commercial real estate information, analytics and marketplaces. Apartments.com is an online apartment rentals resource for renters, property managers and owners.

© 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.