Endurance launches $735 million term loan at Libor plus 500 bps

By Sara Rosenberg

New York, Jan. 21 – Endurance International Group Holdings Inc. (EIG Investors Corp.) launched on Thursday its $735 million incremental seven-year first-lien term loan with price talk of Libor plus 500 basis points with a 1% Libor floor and an original issue discount of 98, according to a market source.

The loan has 101 soft call protection for six months.

The company’s $910 million of bank debt (B1/B) also includes a $175 million five-year revolver.

Credit Suisse Securities (USA) LLC, Goldman Sachs Bank USA and Jefferies Finance LLC are the joint bookrunners and joint lead arrangers on the deal.

Commitments are due at 5 p.m. ET on Feb. 3.

Proceeds will be used to help fund the acquisition of Constant Contact Inc. for $32.00 per share in cash, for a value of about $1.1 billion.

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.

Closing is expected this quarter, 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.

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