Endurance launches $2.3 billion of term loans at Libor plus 400 bps

By Sara Rosenberg

New York, Jan. 20 – Endurance International Group Holdings Inc. was scheduled to hold a lender call at 3 p.m. ET on Wednesday to launch $2.295 billion of term loans that are talked at Libor plus 400 basis points with a 0.75% Libor floor and an original issue discount of 99 to 99.5, according to a market source.

The term loans, which are being sold as a strip, are split between a $1.83 billion seven-year funded term loan and a $465 million delayed-draw term loan that is available until July 7, the source said.

The debt has 101 soft call protection for six months.

Ticking fees on the delayed-draw term loan are half the spread from days 46 to 74 and the full spread thereafter.

J.P. Morgan Securities LLC, BofA Securities Inc., Deutsche Bank Securities Inc., UBS Investment Bank, BNP Paribas Securities Corp., Mizuho, Barclays, CPPIB, CBAM, RBC Capital Markets, Golub, Ares, Credit Suisse Securities (USA) LLC, Antares and Jefferies LLC are the leads on the senior secured deal. JPMorgan is the administrative agent.

Commitments are due at 5 p.m. ET on Jan. 28, the source added.

Proceeds will be used with equity to fund the buyout of the company by Clearlake Capital Group LP for $9.50 per share in cash. The transaction is valued at about $3 billion, including outstanding debt.

Closing is expected in the first quarter of 2021, subject to approval by Endurance shareholders and customary conditions.

Endurance is a Burlington, Mass.-based provider of cloud-based platform solutions designed to help small and medium-size businesses succeed online.

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