Research Update: RealPage Inc. Rated 'B-' On Acquisition By Thoma Bravo; First-Lien Debt Rated 'B'; Outlook Stable

Thoma Bravo LLC, a private equity firm focused on software and technology investments, is acquiring Richardson, Texas-based RealPage Inc., a software-as-a-service (SaaS) provider of property management technology solutions, for approximately $10.2 billion. The company seeks to issue $3 billion in first-lien credit facilities ($2.75 billion term loan due 2028 and $250 million revolver due 2026), $1 billion second-lien term loan due 2029 (not rated). S&P Global Ratings is assigning its 'B-' issuer credit rating to RealPage and its 'B' issue-level and '2' recovery ratings to the company's proposed first-lien credit facilities. The '2' recovery rating indicates our expectation for substantial recovery (70%-90%; rounded estimate: 70%) in the event of a payment default. The stable outlook reflects our expectation for high-single-digit-percent

...- Thoma Bravo LLC, a private equity firm focused on software and technology investments, is acquiring Richardson, Texas-based RealPage Inc., a software-as-a-service (SaaS) provider of property management technology solutions, for approximately $10.2 billion. - The company seeks to issue $3 billion in first-lien credit facilities ($2.75 billion term loan due 2028 and $250 million revolver due 2026), $1 billion second-lien term loan due 2029 (not rated). - S&P Global Ratings is assigning its 'B-' issuer credit rating to RealPage and its 'B' issue-level and '2' recovery ratings to the company's proposed first-lien credit facilities. The '2' recovery rating indicates our expectation for substantial recovery (70%-90%; rounded estimate: 70%) in the event of a payment default. - The stable outlook reflects our expectation for high-single-digit-percent organic revenue growth and expanding adjusted EBITDA margins resulting in meaningful deleveraging and cash flow improvement over the next 12 months....

Research Update