Endure Digital sets lender call for today to launch $2.295B term loan

Lead arranger J.P. Morgan has scheduled a lender call for today at 3 p.m. ET to launch $2.295 billion of first-lien term loan financing for Endure Digital Inc., according to sources. Commitments are due by 5 p.m. ET on Jan. 28, and allocations are expected to follow on Jan. 29.

Price talk for the seven-year term loan B is L+400 with a 0.75% Libor floor and an issue price in the range of 99-99.5. At talk, the yield to maturity is 4.93%-5.02%. Lenders are offered six months of 101 soft call protection.

The financing is comprised of a $1.83 billion funded term loan that is being dubbed the Eagle term loan tranche, and a $465 million delayed-draw term loan that will be available until July 7, which is referenced as the Defender term loan tranche. There are no commitment fees on the DDTL for the first 45 days from allocation, then fees are L+200 for days 46-74 and L+400 thereafter.

Proceeds from the loan, along with $640 million of other unsecured debt, will be used to finance the buyout of Endurance International Group Inc. and the acquisition of Web.com Group.

Clearlake Capital Group announced on Nov. 2 that it was taking Nasdaq-listed Endurance International Group Holdings Inc. private in a deal valued at roughly $3 billion, including debt. J.P. Morgan, BofA Securities, Deutsche Bank and UBS committed to provide debt financing for the transaction. Clearlake announced on Jan. 5 that it was making a strategic investment in Web.com Group Inc. while existing sponsor Siris Capital Group would remain a "significant" equityholder.

The combined business will be a provider of domain name registration, hosting, and web presence solutions.

Endurance International is a provider of online enablement solutions operating through two business units; Web Presence and Digital Marketing (Constant Contact). Web.com is a provider of domain name registration and web presence solutions. Constant Contact will be spun out into a separate standalone entity at the closing of the Endurance and Web.com transactions, sources note.