GoDaddy upsizes revolving credit line to $1,200M, extends to 2031
What's the deal? GoDaddy has secured a new $1,200 million revolving credit facility, refinancing and replacing its existing $1,000 million line. Royal Bank of CanadaDealroom has a profile for this one. Try Dealroom → serves as administrative agent, collateral agent, swingline lender and a letter of credit issuer.
How it's structured: The new facility carries a stated maturity date of July 31, 2031. The margin on revolving loans ranges from 1.25% to 1.75% for SOFR-, EURIBOR- or SONIA-based rates, and 0.25% to 0.75% for US dollar base rate loans, each tied to the company's first lien net leverage ratio.
The deal was executed through a Joinder and Thirteenth Amendment to the company's 2017 credit agreement, entered into by GoDaddy subsidiaries Go Daddy Operating CompanyDealroom has a profile for this one. Try Dealroom → and GD Finance CoDealroom has a profile for this one. Try Dealroom →.
Why it matters: The $1,200 million line sits in the top 10% of all US post-IPO debt rounds by size, based on a sample of 4,789 deals. That places GoDaddy's move among the larger financing arrangements in its category.
The fine print: The facility is subject to a springing maturity triggered by near-term maturities of certain term loans or debt securities exceeding $500 million. It also retains an existing covenant: if utilisation reaches at least 40% of total commitments, GoDaddy must keep its first lien net leverage ratio no higher than 5.75:1.00.
The signal: By upsizing its revolver 20% and pushing maturity out to 2031, GoDaddy locks in more flexible liquidity on longer terms. The larger backstop gives the domains and hosting company room to manoeuvre without tapping equity markets.
Image credit: Andrew Currie
