RentPath sets bidding procedures for $587.5 million sale of business

By Caroline Salls

Pittsburgh, Feb. 13 – RentPath Holdings, Inc. requested court approval of the bidding procedures for the proposed sale of its assets, according to a motion filed Thursday with the U.S. Bankruptcy Court for the District of Delaware.

As previously reported, RentPath filed bankruptcy on Wednesday after entering an agreement under which CoStar Group, Inc. affiliate CSGP Holdings, LLC will acquire RentPath’s business for $587.5 million.

CoStar will serve as the stalking horse bidder in the court-supervised auction and sale process. If it is not ultimately the high bidder, RentPath will pay CoStar a break-up fee equal to 2% of the cash purchase price.

RentPath said the first-lien lenders supporting the restructuring have provided the company with a clear path to emergence while pursuing CoStar’s bid or any other higher or otherwise better offers by agreeing to backstop the sale process with a binding credit bid of $492.7 million of their first-lien claims.

Under the proposed procedures, competing bids are due by 4 p.m. ET on March 25.

An auction will be held on March 31, if necessary.

The company is asking the court to schedule the sale hearing for May 29.

A hearing on approval of the bidding procedures is scheduled for March 12.

RentPath is an Atlanta-based vertical search company for apartment and home renters. The Chapter 11 case number is 20-10312.

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