TEMPE, Ariz. - GoDaddy Inc. (NYSE: NYSE:GDDY), a leading internet domain registrar and web hosting company, has successfully completed a refinancing of its debt structure. Today, GoDaddy's subsidiaries, Go Daddy Operating Company, LLC and GD Finance Co, LLC, finalized the Tenth Amendment to their existing Credit Agreement, which dates back to February 15, 2017.
The amendment introduced a new tranche of term loans amounting to $1,752 million, which are set to mature in 2029. These Replacement Term Loans were utilized to refinance the outstanding Existing Tranche B-5 Term Loans. The repayment schedule of the new loans includes an amortization rate of 1.00% per annum, with the first payment due on or about March 31, 2024.
As part of the refinancing terms, the Applicable Margin for the SOFR Loans is set at 2.00%, and for the ABR Loans, it is 1.00%. The Royal Bank of Canada served as the Administrative Agent, Collateral Agent, Swingline Lender, and a Letter of Credit Issuer in this agreement.
GoDaddy, known for its services that support entrepreneurs globally in launching and expanding their online presence, offers a variety of tools for website creation, customer attraction, and online payment processing. The company prides itself on its user-friendly products and round-the-clock customer support.
The information reported in this article is based on a press release statement from GoDaddy Inc.
InvestingPro Insights
With GoDaddy Inc. (NYSE: GDDY) making strategic moves to refinance its debt, it's important for investors to look at the company's financial health and market performance. According to real-time data from InvestingPro, GoDaddy has a market capitalization of $15.28 billion and is trading at a high P/E ratio of 46.3. The company's revenue for the last twelve months as of Q3 2023 was $4,193.7 million, indicating a growth of 3.02%. Additionally, the gross profit margin stood at 63.02%, reflecting GoDaddy's ability to maintain profitability.
InvestingPro Tips highlight that GoDaddy's management has been actively buying back shares, signaling confidence in the company's future. Moreover, the company has a high shareholder yield, which may be attractive to investors seeking companies with a proactive approach to enhancing shareholder value. It's worth noting that analysts predict GoDaddy will be profitable this year, which aligns with the company's profitable performance over the last twelve months.
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