GoDaddy Announces Proposed $800 Million Offering of Senior Notes

Rhea-AI Summary

GoDaddy Inc. (NYSE: GDDY) announced its intention to offer $800 million in senior notes through an institutional offering. The Notes will be senior unsecured obligations guaranteed by existing credit facility entities. Proceeds will be used for general corporate purposes, including working capital and potential acquisitions. This offering does not constitute a sale or solicitation in jurisdictions where it would be unlawful, as the Notes are not registered under the Securities Act.

Positive

• Intended proceeds of $800 million may enhance liquidity for working capital and acquisitions.
• Senior unsecured notes expected to be guaranteed by existing entities, providing security.

Negative

• Offering may lead to shareholder dilution if additional debt impacts existing equity.
• Forward-looking statements indicate uncertainty and possible risks affecting financial results.

SCOTTSDALE, Ariz., Feb. 22, 2021 /PRNewswire/ -- GoDaddy Inc. (NYSE: GDDY) ("GoDaddy") today announced that its subsidiaries, Go Daddy Operating Company, LLC and GD Finance Co, Inc. (the "Issuers"), intend to offer, subject to market and other considerations, $800 million aggregate principal amount of senior notes (the "Notes") through an offering to persons reasonably believed to be qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as amended (the "Securities Act"), and outside the United States to non-U.S. persons pursuant to Regulation S under the Securities Act. 

The notes will be senior unsecured obligations of the Issuers and are expected to be guaranteed by the same entities that guarantee obligations under the Issuers' existing credit facility, including Desert Newco, LLC and certain subsidiaries of the Issuers.  The interest rate, redemption provisions, maturity date and other terms of the Notes will be determined by negotiations between GoDaddy and the initial purchasers.

GoDaddy intends to use the net proceeds from this offering for general corporate purposes, which may include working capital, capital expenditures and potential acquisitions and strategic transactions.

This announcement does not constitute an offer to sell or a solicitation of an offer to buy the Notes, nor shall there be any offer, solicitation or sale in any state or jurisdiction in which such an offer, solicitation or sale would be unlawful.  The Notes have not been registered under the Securities Act or any state securities laws and may not be offered or sold in the United States absent registration or an applicable exemption from such registration requirements.

Forward-Looking Statements

Certain statements in this announcement, including statements regarding the closing of the offering of Notes and GoDaddy's intended use for the proceeds of the offering, are "forward-looking statements" within the meaning of Section 27A of the Securities Act and Section 21E of the Securities Exchange Act of 1934, as amended, that are subject to risks and uncertainties. These forward-looking statements are based on management's current expectations, and as a result of certain risks and uncertainties, actual events or results may differ materially from those contained in the forward-looking statements, including those factors set forth in GoDaddy's Annual Report on Form 10-K and other filings with the Securities and Exchange Commission. These documents contain and identify important factors that could cause the actual results to differ materially from those contained in GoDaddy's forward-looking statements. This list of factors is not intended to be exhaustive. Such forward-looking statements only speak as of the date of this announcement, and GoDaddy disclaims any obligation to update information contained in these forward-looking statements.

Source: GoDaddy Inc.

 

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SOURCE GoDaddy

FAQ

What is the purpose of GoDaddy's $800 million senior notes offering?

GoDaddy intends to use the proceeds for general corporate purposes, including working capital and potential acquisitions.

How will GoDaddy's offering of senior notes affect shareholders?

The offering may lead to dilution of existing shares if it impacts the company's equity structure.

What are the terms associated with the senior notes offered by GoDaddy?

The interest rate, redemption provisions, and maturity date will be determined through negotiations with initial purchasers.

Is the offering of GoDaddy's senior notes registered?

No, the notes have not been registered under the Securities Act and cannot be sold in the U.S. without registration or an exemption.