GoDaddy Inc. Completes Refinancing of Tranche B-2 Term Loans and Revolving Credit Facility

Rhea-AI Summary

On November 10, 2022, GoDaddy Inc. (GDDY) announced the successful refinancing of its credit agreement, closing a new credit facility worth $1,770 million in term loans and a $1,000 million revolving credit facility. The new loans aim to refinance existing Tranche B-2 term loans and enhance liquidity, with the first installment due March 31, 2023. The terms include varied interest rates based on loan types, while the compliance period for leverage ratios has been adjusted to require a 40% utilization of the revolving facility.

Positive

• Refinanced $1,770 million in term loans, improving financial stability.
• New revolving credit facility of $1,000 million enhances liquidity.

Negative

• None.

TEMPE, Ariz., Nov. 10, 2022 /PRNewswire/ -- GoDaddy Inc. (NYSE: GDDY) Go Daddy Operating Company, LLC and GD Finance Co, LLC, (each a subsidiary of GoDaddy Inc., and together, the "Borrowers") closed the credit agreement refinancing announced on October 21, 2022. In connection with the closing, Borrowers entered into a Sixth Amendment (the "Sixth Amendment") to the Second Amended and Restated Credit Agreement, dated February 15, 2017 (as amended, restated, or otherwise modified from time to time, the "Credit Agreement"), by and among the Borrowers, certain other GoDaddy subsidiaries, Royal Bank of Canada as the successor Administrative Agent, Collateral Agent, Swingline Lender and Letter of Credit Issuer and the other parties party thereto. Terms used, but not defined in this news release are as defined in the Credit Agreement and amended by the Sixth Amendment as filed with the Securities and Exchange Commission.

The Sixth Amendment provides for (i) a new $1,770 million tranche of term loans maturing in 2029 (the "Replacement Term Loans"), the proceeds of which were used to refinance all outstanding Tranche B-2 Term Loans, and (ii) a new revolving credit facility of $1,000 million maturing in 2027, which replaced the Borrowers' existing revolving commitments of $600 million. The amortization rate for the Replacement Term Loans is 1.00% per annum and the first installment is payable on March 31, 2023. The initial Applicable Margin is (i) 3.25% for the Replacement Term Loans that are Secured Overnight Financing Rate ("SOFR") Loans, (ii) 2.25% for the Replacement Term Loans that are ABR Loans, (iii) 1.50% for such new revolving commitments for loans that are SOFR Loans and (iv) 0.50% for such new revolving commitments for loans that are ABR Loans.

The Sixth Amendment also amended the Credit Agreement to provide that the Compliance Period relating to the consolidated first lien secured leverage ratio of certain of the Company's subsidiaries occurs upon the utilization of at least 40% of the revolving facility, as opposed to the previous utilization level of at least 20%.

About GoDaddy

GoDaddy helps millions of entrepreneurs globally start, grow, and scale their businesses. People come to GoDaddy to name their idea, build a professional website, attract customers, sell their products and services, and accept payments online and in-person. GoDaddy's easy-to-use tools help microbusiness owners manage everything in one place and its expert guides are available to provide assistance 24/7. To learn more about the company, visit www.GoDaddy.com.

Source: GoDaddy Inc.

 

View original content to download multimedia:https://www.prnewswire.com/news-releases/godaddy-inc-completes-refinancing-of-tranche-b-2-term-loans-and-revolving-credit-facility-301675078.html

SOURCE GoDaddy Inc.

FAQ

What is the significance of GoDaddy's refinancing on November 10, 2022?

The refinancing allows GoDaddy to improve its financial stability by restructuring its existing debt.

How much is the new term loan GoDaddy secured?

GoDaddy secured a new term loan of $1,770 million.

What is the maturity date for GoDaddy's new revolving credit facility?

The new revolving credit facility matures in 2027.

What changes were made to GoDaddy's compliance period regarding the leverage ratio?

The compliance period now requires a minimum utilization of 40% of the revolving facility.