CoStar Group Announces Pricing of $1.0 Billion Senior Notes Offering

CoStar Group, Inc. (Nasdaq: CSGP) (“CoStar”) announced today that it has priced an offering of $1.0 billion in aggregate principal amount of 2.800% senior unsecured notes due 2030 (the “Notes”) in a private placement (the “Offering”) exempt from registration under the Securities Act of 1933, as amended (the “Securities Act”). The sale of the Notes is expected to be consummated on or about July 1, 2020, subject to customary closing conditions.

CoStar is also seeking to amend and restate its existing $750 million credit facility to, among other things, extend the maturity to 2025, release all existing security interests, make changes to certain covenants and revise pricing (the “Amended and Restated Credit Facility”).

CoStar intends to use the net proceeds from the Offering to repay all outstanding borrowings under the Issuer’s existing credit facility, fund all or a portion of the costs of any strategic acquisitions it determines to pursue in the future, and for working capital and other general corporate purposes.

The Notes will be senior unsecured obligations of CoStar and will be guaranteed by each of CoStar’s existing and future domestic subsidiaries that is a borrower under or that guarantees obligations under the Amended and Restated Credit Facility, subject to certain exceptions.

The Notes are being offered in a private placement to qualified institutional buyers pursuant to Rule 144A under the Securities Act, and to certain non-U.S. persons in transactions outside of the United States in reliance on Regulation S under the Securities Act. The Notes will not be registered under the Securities Act or the securities laws of any state or jurisdiction, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements.

This news release shall not constitute an offer to sell or the solicitation of an offer to purchase the Notes, nor shall there be any sale of the Notes in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction.

About CoStar Group, Inc.

CoStar Group, Inc. (Nasdaq: CSGP) is the leading provider of commercial real estate information, analytics and online marketplaces. Founded in 1987, CoStar conducts expansive, ongoing research to produce and maintain the largest and most comprehensive database of commercial real estate information. Our suite of online services enables clients to analyze, interpret and gain unmatched insight on commercial property values, market conditions and current availabilities. Headquartered in Washington, DC, CoStar maintains offices throughout the U.S. and in Europe, Canada and Asia with a staff of over 4,200 worldwide, including the industry’s largest professional research organization.