GoDaddy launches $746M term loan repricing; commits due March 2

Lead arranger Barclays has launched a repricing transaction for GoDaddy Inc.'s $746 million term loan B-3 due August 2027, according to sources. Commitments are due by 5 p.m. ET on March 2.

Price talk for the covenant-lite first-lien term loan is set at L+200, with a 0% Libor floor, offered at par. Lenders are also offered six months of 101 soft call protection. At talk, yield to maturity is approximately 2.20%.

The transaction will lower the spread on the facility from its existing L+250, with a 0% floor. The company issued the existing term loan in August 2020 to retire payables related to tax-receivable agreements.

Existing first-lien ratings are BB/Ba1, with a 3 recovery rating from S&P Global Ratings. Corporate ratings are BB/Ba2, with stable outlooks from both Ratings and Moody's. The borrower is Go Daddy Operating Co LLC.

The issuer completed an $800 million offering of eight-year 3.5% senior unsecured bonds this week that will be used for general corporate purposes.

GoDaddy designs and develops cloud-based technology products for small businesses, Web design professionals and individuals in the United States and internationally.