San Francisco-based LoopNet, an online marketplace for US commercial real estate and businesses for sale, has announced that Calera Capital, in conjunction with existing private equity
San Francisco-based LoopNet, an online marketplace for US commercial real estate and businesses for sale, has announced that Calera Capital, in conjunction with existing private equity investors Trinity Ventures and Rustic Canyon Partners, has agreed to purchase USD50m of LoopNet convertible preferred stock.
‘This financing will provide LoopNet with additional resources to pursue and accelerate our growth strategy in this unprecedented market environment,’ says Richard Boyle, chairman and chief executive of LoopNet. ‘We are very pleased with the level of support, and confidence in our vision and business, that this investment demonstrates by our new and previous investors.’
Under terms of the investment agreement, Calera, Trinity and Rustic Canyon will collectively purchase USD50m of convertible preferred stock. The preferred stock is convertible into shares of LoopNet’s common stock at USD6.72 per share, or an approximate ten per cent premium to the closing price per share of the company’s common stock on 27 March 2009.
If converted, the investment would represent approximately 17.8 per cent of the company’s shares outstanding. The preferred stock does not pay or accrue any dividends. LoopNet may redeem all of the preferred stock if the average closing price per share of the common stock during any 20 consecutive trading days is at least USD16.80, subject to the holders’ right to convert into common stock. The holders of the preferred stock will have an optional redemption right at the sixth year anniversary of the issuance.
In conjunction with this investment, James T. Farrell, managing partner of Calera Capital (pictured), will join LoopNet’s board of directors.
‘We have been extremely impressed with the quality, depth, and execution capabilities of LoopNet’s management team and see compelling opportunities for the Company to build on its leadership position,’ says Farrell.
LoopNet is an online marketplace for commercial real estate and businesses for sale in the US. The LoopNet.com online marketplace enables commercial real estate agents, working on behalf of property owners and landlords, to list properties for sale or for lease by submitting detailed property listing information in order to find a buyer or tenant.
LoopNet also delivers technology and information services to commercial real estate organisations to manage their online listing presence and optimise property marketing.
Its customers include virtually all of the top commercial real estate firms in the US, including CB Richard Ellis, Century 21 Commercial, Coldwell Banker Commercial, Colliers International, Corfac International, The Core Network, Cushman & Wakefield, First Industrial Realty Trust, Grubb & Ellis, Jones Lang LaSalle, Lee & Associates, Lincoln Property Company, Marcus & Millichap, NAI Global, Oncor International, ProLogis, Prudential CRES, Re/Max, Sperry Van Ness, Staubach Retail and TCN Worldwide.
