TEMPE, Ariz. - GoDaddy Inc. (NYSE: NYSE:GDDY), a leading internet domain registrar and web hosting company with a market capitalization of $29.4 billion, has successfully completed a refinancing of its existing credit facilities. According to InvestingPro data, the company's stock is currently trading near its 52-week high of $210.30, suggesting strong investor confidence in its financial management. The company's subsidiaries, Go Daddy Operating Company, LLC and GD Finance Co, LLC, known collectively as the Borrowers, have entered into a Twelfth Amendment to their Credit Agreement, securing a new $1,463 million tranche of term loans.
The Replacement Term Loans, which are set to mature in 2029, will replace the outstanding Existing Tranche B-6 Term Loans. These loans have an annual amortization rate of 1.00%, with the first payment due around December 31, 2024. With a current ratio of 0.56 and total debt of approximately $4 billion as reported by InvestingPro, this refinancing comes at a crucial time for the company's liquidity management. The Twelfth Amendment specifies that the Applicable Margin for the SOFR Loans is 1.75% and 0.75% for the ABR Loans.
This financial move is part of GoDaddy's ongoing efforts to optimize its capital structure and reduce its cost of capital. The refinancing is expected to provide the company with enhanced financial flexibility as it continues to support millions of entrepreneurs worldwide in starting and scaling their businesses.
GoDaddy offers a range of services, including domain registration, web hosting, website building, and e-commerce solutions. The company also provides 24/7 expert guidance to its customers. GoDaddy Airo, the company's AI-powered platform, aims to simplify and accelerate the online presence and growth of small businesses.
The details of the Twelfth Amendment will be filed with the Securities and Exchange Commission, ensuring transparency and compliance with regulatory requirements.
This financial restructuring is based on a press release statement from GoDaddy Inc. and reflects the company's strategic financial management rather than operational performance. It is part of GoDaddy's commitment to maintaining a robust financial foundation for its growth initiatives. The company has demonstrated strong financial performance with a 96.8% return over the past year. For deeper insights into GoDaddy's financial health and detailed analysis, investors can access the comprehensive Pro Research Report available on InvestingPro, which covers over 1,400 US stocks with expert analysis and actionable intelligence.
In other recent news, GoDaddy Inc. has seen several analyst firms, including Baird, RBC Capital Markets, JPMorgan (NYSE:JPM), and Oppenheimer, revise their stock targets upwards, reflecting confidence in the company's growth trajectory. This follows GoDaddy's impressive third quarter financial performance, which saw a 7% year-over-year increase in total revenue, reaching $1.15 billion. Notably, the company's Applications & Commerce segment experienced a 16% growth in revenue.
Analysts from these firms attended GoDaddy's investor dinner, where they gained insights into the company's strategic direction and new product offerings. A significant focus was on GoDaddy's Airo platform, with the introduction of Airo Plus, a premium service expected to provide direct monetization opportunities. This development, along with the company's use of artificial intelligence and bundling strategies, has reportedly resulted in customers adopting secondary products 25% quicker.
In terms of personnel changes, GoDaddy appointed Phontip Palitwanon as the new Chief Accounting Officer following a restructuring within the accounting department. These recent developments are part of GoDaddy's broader internal optimization efforts, which are ongoing and still offer potential operational expenditure savings. The company also repurchased 5.2 million shares for $668 million, reducing gross shares outstanding by 23% since January 2022.
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