GoDaddy Inc. Announces Refinancing of Tranche B-6 Loans

Rhea-AI Summary

GoDaddy announced a significant refinancing operation where its operating companies have allocated $1,463 million in Replacement Term Loans maturing in 2029. The proceeds will be used to refinance all outstanding Tranche B-6 Term Loans under their Second Amended and Restated Credit Agreement from February 15, 2017.

The refinancing transaction is expected to close in the fourth quarter of 2024, subject to certain conditions. The company notes that there is no guarantee the transaction will be completed as described.

Positive

• Secured $1,463 million in new term loans
• Extended debt maturity to 2029 through refinancing

Negative

• None.

Insights

Financial Analyst

The $1.463 billion term loan refinancing represents a strategic financial move for GoDaddy. This refinancing extends the maturity to 2029, potentially providing more favorable terms and enhanced financial flexibility. The timing aligns with broader market trends where companies are proactively managing their debt structures amid evolving interest rate environments.

The refinancing of the Tranche B-6 loans could improve GoDaddy's debt profile and potentially reduce interest expenses, though specific terms aren't disclosed. With a market cap of $29.3 billion, this debt represents about 5% of the company's market value, indicating a manageable leverage position. The extended maturity to 2029 provides substantial runway for operational execution without near-term refinancing pressures.

TEMPE, Ariz., Dec. 5, 2024 /PRNewswire/ -- GoDaddy Inc. (NYSE: GDDY) announced Go Daddy Operating Company, LLC and GD Finance Co, LLC (together with Go Daddy Operating Company, LLC, the "Borrowers") allocated a $1,463 million tranche (the "Replacement Term Loans") of term loans maturing in 2029, the proceeds of which will be used to refinance all outstanding Tranche B-6 Term Loans under the Second Amended and Restated Credit Agreement, dated as of February 15, 2017 (as amended, restated, supplemented or otherwise modified, refinanced or replaced from time to time, the "Credit Agreement"), by and among the Borrowers, Desert Newco, LLC, the lenders and the other parties thereto (such refinancing, the "Term Loan Refinancing"). Capitalized terms used herein, but not otherwise defined herein are as defined in the Credit Agreement.

The foregoing transactions are subject to conditions and are anticipated to close in the fourth quarter of 2024. However, there can be no assurance that the Borrowers will be able to successfully complete the transactions, on the terms described above, or at all.

About GoDaddy

GoDaddy helps millions of entrepreneurs globally start and scale their businesses. People come to GoDaddy to name their idea, build a website and logo, sell their products and services, and accept payments. GoDaddy Airo™, the company's AI-powered experience, makes growing a small business faster and easier by helping them to get their idea online in minutes, drive traffic and boost sales. GoDaddy's expert guides are available 24/7 to provide assistance. To learn more about the company, visit www.GoDaddy.com.

Forward-looking Statements

This news release may contain forward-looking statements, including, but not limited to, our financing plans and the details thereof, including the proposed use of proceeds therefrom, the expected timing of the Term Loan Refinancing with the Replacement Term Loans and the ability to close such transaction. Forward-looking statements may generally be identified by the use of the words "anticipates," "expects," "predicts," "goals," "intends," "plans," "should," "could," "would," "may," "will," "believes," "estimates," "potential," "target," "commit," "forecast," "tracking," or "continue" and variations or similar expressions, and phrases or statements that certain actions, events or results may, could, should or will be achieved, received or taken or will occur or result, and similar such expressions also identify forward-looking information. These forward-looking statements are based upon the current expectations and beliefs of management and are provided for the purpose of providing additional information about such expectations and beliefs and readers are cautioned that these statements may not be appropriate for other purposes. These forward-looking statements are subject to certain risks and uncertainties that could cause actual results and events to differ materially from those described in these forward-looking statements. These risks and uncertainties include, but are not limited to, the risks and uncertainties discussed in GoDaddy Inc.'s (the "Company") most recent annual and quarterly reports and detailed from time to time in the Company's other filings with the U.S. Securities and Exchange Commission, which risks and uncertainties are incorporated herein by reference.

Readers are cautioned not to place undue reliance on any of these forward-looking statements. These forward-looking statements speak only as of the date hereof. The Company undertakes no obligation to update any of these forward-looking statements to reflect events or circumstances after the date of this news release or to reflect actual outcomes, unless required by law.

Source: GoDaddy Inc.

 

View original content to download multimedia:https://www.prnewswire.com/news-releases/godaddy-inc-announces-refinancing-of-tranche-b-6-loans-302324260.html

SOURCE GoDaddy Inc.

FAQ

What is the size of GoDaddy's (GDDY) new term loan refinancing in 2024?

GoDaddy's new term loan refinancing amounts to $1,463 million, allocated for Replacement Term Loans maturing in 2029.

When will GoDaddy's (GDDY) term loan refinancing close?

The term loan refinancing is expected to close in the fourth quarter of 2024, subject to conditions.

What is the purpose of GoDaddy's (GDDY) 2024 term loan refinancing?

The refinancing will be used to refinance all outstanding Tranche B-6 Term Loans under the Second Amended and Restated Credit Agreement from 2017.