RentPath Operations Continuing as Normal Throughout Sale Process
On February 11, 2020, RentPath announced that it entered into an asset purchase agreement under which CSGP Holdings, LLC, an affiliate of CoStar Group, Inc. (“CoStar”) has agreed to acquire RentPath.
Concurrently, the Company entered into a Restructuring Support Agreement (the “RSA”) supported by holders of more than 75% of first and second lien debt, as well as its private equity sponsors.
In accordance with the RSA, RentPath has commenced voluntary chapter 11 cases in the United States Bankruptcy Court for the District of Delaware to facilitate a sale transaction. CoStar will serve as the “stalking horse bidder” in a court-supervised auction and sale process. The proposed transaction with CoStar is subject to higher or otherwise better offers. If other qualified bids are submitted, the Company will conduct an auction. CoStar’s agreement is subject to, among other things, Bankruptcy Court approval and certain other customary conditions. The deadline to submit bids will be set by the Bankruptcy Court. RentPath intends to move through this process as quickly as possible.
RentPath’s operations will continue as normal throughout the sale process, including ongoing work to increase consumer traffic and grow the Company’s new business segments, such as social advertising, lead management and reputation management. RentPath’s sites today host an average of 14 million unique visitors each month searching for rental homes. With the funding received as part of the process, RentPath will continue to invest in marketing and product development.