Endurance lifts funded term loan to $1.94 billion, updates pricing

By Sara Rosenberg

New York, Jan. 27 – Endurance International Group Holdings Inc. upsized its seven-year funded term loan to $1.935 billion from $1.83 billion, according to a market source.

In addition, price talk on the funded term loan and the $465 million delayed-draw term loan that is available until July 7 was changed to a range of Libor plus 350 basis points to 375 bps from Libor plus 400 bps and the original issue discount was set at 99.5, the tight end of the 99 to 99.5 talk, the source said.

The term loan debt still has a 0.75% Libor floor and 101 soft call protection for six months.

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.

Recommitments were scheduled to be due at 3 p.m. ET on Wednesday, the source added.

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

Closing is expected this quarter, 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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