GoDaddy Inc. Completes Refinancing of Existing Tranche B-6 Term Loans

Rhea-AI Summary

GoDaddy Inc. (NYSE: GDDY) announced the completion of a significant credit agreement refinancing through its subsidiaries. The company has secured $1,463 million in new term loans maturing in 2029, which were used to refinance all outstanding Existing Tranche B-6 Term Loans. The refinancing was executed through a Twelfth Amendment to the Second Amended and Restated Credit Agreement.

The new Replacement Term Loans feature an amortization rate of 1.00% per annum, with the first installment due around December 31, 2024. The Applicable Margin is set at 1.75% for SOFR Loans and 0.75% for ABR Loans under the new terms.

Positive

• Secured $1,463 million in new term loans extending maturity to 2029
• Favorable interest rate terms with 1.75% margin for SOFR Loans

Negative

• Additional debt obligation with 1% annual amortization rate

Insights

Financial Analyst

This refinancing of $1.463 billion in term loans represents a strategic financial move for GoDaddy. The new loan structure, maturing in 2029, maintains a modest 1% annual amortization rate with favorable interest terms - 1.75% for SOFR loans and 0.75% for ABR loans. The extended maturity to 2029 provides enhanced financial flexibility and improved debt structure. The pricing terms suggest strong market confidence in GoDaddy's creditworthiness, particularly notable given the current higher interest rate environment. This refinancing should help optimize the company's capital structure and potentially reduce interest expenses, though the full impact will depend on the mix between SOFR and ABR loans utilized.

Market Research Analyst

The successful refinancing demonstrates GoDaddy's continued strong access to debt markets and ability to maintain favorable borrowing terms. With a market cap of $29.4 billion, this $1.463 billion term loan represents a manageable portion of the company's capital structure. The extended maturity profile to 2029 reduces near-term refinancing risk and provides stability to the balance sheet. The competitive spread over SOFR/ABR benchmarks indicates lenders' positive view of GoDaddy's business model and cash flow generation capabilities. This transaction strengthens GoDaddy's financial position and provides additional runway for strategic initiatives and potential growth investments.

TEMPE, Ariz., Dec. 16, 2024 /PRNewswire/ -- GoDaddy Inc. (NYSE: GDDY) announced Go Daddy Operating Company, LLC and GD Finance Co, LLC (each, a subsidiary of GoDaddy Inc. and together, the "Borrowers") closed the previously announced credit agreement refinancing. In connection with the closing, the Borrowers entered into a Twelfth Amendment (the "Twelfth Amendment") to 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, Royal Bank of Canada as the Administrative Agent, the Collateral Agent, the Swingline Lender and a Letter of Credit Issuer, and the other parties thereto. Capitalized terms used, but not defined in this news release are as defined in the Credit Agreement as amended by the Twelfth Amendment, which will be filed with the Securities and Exchange Commission.

The Twelfth Amendment provides for a new $1,463 million tranche of term loans maturing in 2029 (the "Replacement Term Loans"), the proceeds of which were used to refinance all outstanding Existing Tranche B-6 Term Loans. The amortization rate for the Replacement Term Loans is 1.00% per annum and the first installment shall be payable on or about December 31, 2024. Pursuant to the Twelfth Amendment, the Applicable Margin is (i) 1.75% for the Replacement Term Loans that are SOFR Loans and (ii) 0.75% for the Replacement Term Loans that are ABR Loans.

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. 

Source: GoDaddy Inc.

 

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SOURCE GoDaddy Inc.

FAQ

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

GoDaddy's new term loan refinancing amounts to $1,463 million and matures in 2029.

What are the interest rate terms for GDDY's 2024 refinanced term loans?

The Applicable Margin is 1.75% for SOFR Loans and 0.75% for ABR Loans under the refinancing terms.

When is the first payment due on GDDY's 2024 refinanced term loans?

The first installment is payable on or about December 31, 2024, with an amortization rate of 1.00% per annum.

What did GoDaddy (GDDY) use the proceeds from the new term loans for?

The proceeds were used to refinance all outstanding Existing Tranche B-6 Term Loans.