Endurance’s $1.697 Billion Refinancing
June 16, 2017
Cleary Gottlieb represented Endurance International Group Holdings, Inc., in the refinancing of its existing term loan facility by way of new first-lien term loans due February 2023.
The refinancing consisted of a single tranche of first-lien term loans in an aggregate principal amount of approximately $1,697 million, and the transaction closed on June 14, 2017. The proceeds of the transaction were used to repay Endurance’s outstanding $716.625 million term loans due November 2019 and $980.625 million incremental term loans due February 2023.
The new first-lien term loans are priced at an interest rate of LIBOR + 400, which is 148 basis points lower than the pricing of the 2019 term loans and 100 basis points lower than the pricing of the 2023 term loans. Endurance expects to reduce its cash interest expense by approximately $22 million on an annual basis as a result of this refinancing.
Endurance International Group Holdings, Inc., is a leading provider of web services to small and medium-sized businesses based in Burlington, Massachusetts.