TEMPE, Ariz. – GoDaddy Inc. (NYSE: NYSE:GDDY), a company well-known for providing internet domain registration and web hosting services, has allocated a $1 billion tranche of term loans set to mature in 2031. The company announced today that it intends to use these funds to refinance existing debts, specifically to extend the maturity date of all outstanding Tranche B-4 Loans and up to $278 million of Tranche B-6 Term Loans.
The refinancing effort, termed the "Term Loan Refinancing," involves Go Daddy Operating Company, LLC, and GD Finance Co, LLC, both of which are part of GoDaddy's corporate family. This move is part of an agreement under the Second Amended and Restated Credit Agreement, which dates back to February 15, 2017.
Completion of these transactions is expected in the second quarter of 2024, subject to certain conditions. However, GoDaddy cautions that there is no guarantee these plans will be executed as proposed or at all.
GoDaddy's core business focuses on supporting entrepreneurs globally by offering tools and services to start, grow, and scale their businesses. The company provides solutions for domain registration, website creation, customer attraction, and online as well as in-person payment processing. GoDaddy emphasizes its commitment to user-friendly tools and 24/7 expert support.
This announcement comes with the standard caution regarding forward-looking statements, which are subject to various risks and uncertainties that could cause actual results to differ materially from expectations. These statements are based on current beliefs and expectations of GoDaddy's management.
Investors and interested parties are reminded that the information disclosed is based on a press release statement. GoDaddy does not undertake any obligation to update forward-looking statements to reflect events after the date of the news release.
InvestingPro Insights
As GoDaddy Inc. (NYSE: GDDY) embarks on its strategic financial maneuver to refinance its debt, investors may find the company's recent performance and market position to be of particular interest. According to InvestingPro data, GoDaddy's market capitalization stands robust at $19.57 billion, reflecting a significant presence in the internet services market. The company's P/E ratio, a key indicator of its valuation, is currently at an attractive 11.68, with an adjusted P/E ratio over the last twelve months as of Q1 2024 at an even more appealing 10.86.
Moreover, GoDaddy's recent revenue growth figures are noteworthy, with a 4.9% increase over the last twelve months as of Q1 2024 and a 7.0% quarterly revenue growth in Q1 2024. This financial health is further underscored by a substantial gross profit margin of 62.97% over the same period, signaling efficient operations and strong market demand for GoDaddy's offerings.
InvestingPro Tips for GoDaddy highlight that management has been aggressively buying back shares, which often reflects confidence in the company's future prospects and a commitment to delivering shareholder value. Additionally, the company has a high shareholder yield, which can be a sign of a company's dedication to returning value to its investors. For those interested in a deeper dive into GoDaddy's financials and strategic outlook, InvestingPro offers 18 additional tips available at https://www.investing.com/pro/GDDY. As a bonus, readers can use the coupon code PRONEWS24 to get an additional 10% off a yearly or biyearly Pro and Pro+ subscription, providing even more insights to inform their investment decisions.
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