Endurance plans $735 million term loan, $350 million senior notes

By Sara Rosenberg

New York, Nov. 2 – Endurance International Group Holdings Inc. intends to get a new $735 million incremental term loan and issue $350 million of senior unsecured notes to help fund its acquisition of Constant Contact Inc., company officials said in a conference call on Monday.

Credit Suisse Securities (USA) LLC and Goldman Sachs are the leads banks on the debt.

Additionally, as part of the transaction, Endurance expects to extend the maturity of its existing term loan, officials remarked.

Combined estimated pro forma secured leverage is 4.3 times and unsecured leverage is 5.2 times based on 2015 adjusted EBITDA of $395 million and $55 million of run rate synergies.

Under the agreement, Constant Contact is being purchased for $32.00 per share in cash, for a value of about $1.1 billion.

Closing is expected in the first quarter of 2016, subject to Constant Contact shareholder approval, and other customary conditions, including clearance under the Hart-Scott-Rodino Antitrust Improvements Act.

Endurance is a Burlington, Mass.-based provider of web hosting and online services. Constant Contact is a Waltham, Mass.-based online marketing company.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.