Go Daddy Operating Company and GD Finance (each a subsidiary of GoDaddy Inc.) closed the credit agreement refinancing announced on Oct. 21, 2022. In connection with the closing, borrowers entered into a sixth amendment to the second amended and restated credit agreement, dated Feb. 15, 2017, 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 a new $1.770 billion tranche of term loans maturing in 2029, the proceeds of which were used to refinance all outstanding Tranche B-2 Term Loans and a new revolving credit facility of $1 billion 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 3.25% for the replacement term loans that are secured overnight financing rate loans, 2.25% for the replacement term loans that are ABR loans, 1.50% for such new revolving commitments for loans that are SOFR Loans and 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%.
