GoDaddy Inc. (NYSE: GDDY) has recently announced the successful completion of a credit agreement refinancing and extension. The company's subsidiary, Go Daddy Operating Company, LLC, and GD Finance Co, LLC, closed the refinancing and extension, entering into an Eleventh Amendment to the Second Amended and Restated Credit Agreement.
As part of the refinancing, GoDaddy secured a new $1,000 million tranche of term loans maturing in 2031, known as the "Replacement Term Loans." The proceeds from these loans were utilized to refinance and extend the maturity of all outstanding Existing Tranche B-4 Term Loans and Repaid Tranche B-6 Term Loans.
One significant aspect of the Replacement Term Loans is the amortization rate, which is set at 1.00% per annum, with the first installment payable on or about September 30, 2024. Additionally, the Eleventh Amendment outlines the Applicable Margin for the Replacement Term Loans, with a rate of 1.75% for SOFR Loans and 0.75% for ABR Loans.
These financial maneuvers indicate GoDaddy's strategic efforts to manage its debt structure, potentially reducing interest expenses and extending the maturity profile of its debt obligations.
GoDaddy, known for assisting entrepreneurs globally in starting, growing, and scaling their businesses, has taken this step to position itself for continued growth and operational flexibility.
As the company continues to navigate the evolving business landscape, this refinancing and extension could provide GoDaddy with enhanced financial stability and resources to pursue its strategic initiatives. As a result of these announcements, the company's shares have moved 1.0% on the market, and are now trading at a price of $139.63. If you want to know more, read the company's complete 8-K report here.
