RBC to provide financing for £2.2 billion ZPG buyout

Security cameras point towards pedestrians outside the Royal Bank of Canada (RBC) headquarters in Toronto, Ontario, Canada March 16, 2017. Picture taken March 16, 2017. REUTERS/Chris Helgren

(LPC) - Royal Bank of Canada is providing the £1.07bn financing backing private equity firm Silver Lake’s £2.2bn acquisition of ZPG ZPG.L, owner of online property platforms Zoopla and PrimeLocation.

The leveraged loan financing comprises a £740m seven-year term loan B, a £150m 6.5-year multicurrency revolving credit facility and a £180m eight-year second-lien loan, according to documents posted on ZPG’s website.

Pricing is undisclosed but is based on leverage for the first-lien facilities.

The buyout is due to close in the third quarter of 2018.

ZPG’s largest shareholder Daily Mail & General Trust (DMGT) is recommending the sale of ZPG to Silver Lake.

In March, DMGT sold real estate data and services firm EDR to Silver Lake and Battery Ventures for US$205m.

DMGT has been invested in Zoopla Property Group since 2012, when DMGT’s online property business, the Digital Property Group, merged with Zoopla, holding a 55% stake in the combined company.

DMGT maintained its support through ZPG Plc’s IPO in 2014 and holds a 29.8% stake.