Endurance International Group Completes Debt Refinancing, Pays Off $315 Million Second Lien Facility
BURLINGTON, Mass., Nov. 26, 2013 (GLOBE NEWSWIRE) -- Endurance International Group Holdings, Inc. (Nasdaq:EIGI), a leading provider of cloud-based platform solutions designed to help small and medium-sized businesses succeed online, today announced the successful refinancing and expansion of its first lien term loan facility and the repayment in full of its $315 million second lien term loan facility. The company repaid the second lien facility using cash on hand and proceeds from its recently completed initial public offering and its expanded first lien facility.
As a result of the refinancing and the payoff of the second lien facility, Endurance now has a single tranche of term debt, consisting of first lien debt of $1,050 million. In addition, the company reset pricing on its first lien facility, which, when combined with the payoff of the second lien facility, will significantly reduce its annual interest expense. The reduction in second lien debt exceeded the company's original estimate of $100 million (plus fees) disclosed during the IPO process.
Hari Ravichandran, Endurance International Group's CEO and Founder, commented, "We are very pleased with the completion of this refinancing — particularly the fact that we paid down more of our second lien debt than we initially indicated. This refinancing allows us to drive our growth strategy and continue to enhance long-term value for our shareholders."
Endurance also increased its revolving loan facility by $40 million to $125 million, none of which is currently drawn down.
About Endurance International Group
Endurance International Group is a leading provider of cloud-based platform solutions designed to help small and medium-sized businesses succeed online. Less than 20 years old, Endurance serves over 3.4 million subscribers through a family of brands that includes Bluehost, HostGator, Domain.com, FatCow, iPower and iPage. Endurance is headquartered in Burlington, Massachusetts, has a presence in Asia and the Americas, and employs approximately 2,500 people. Endurance provides a comprehensive suite of over 150 products and services that includes web presence and mobile sites, email and e-commerce solutions, as well as more advanced offerings, such as SEO services, scalable computing, security, storage and backup, online marketing and productivity solutions.
Endurance International Group and the compass logo are trademarks of The Endurance International Group, Inc. Other brand names of Endurance International are trademarks of The Endurance International Group, Inc. or its subsidiaries.
This press release may contain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, including statements about the expected impact of our refinancing and the payoff of our second lien debt. Actual results may differ materially from our expectations as a result of various important factors. For additional discussion of these and other factors, please refer to our filings with the Securities and Exchange Commission. Any forward-looking statements represent our views only as of today and we do not assume any obligation to update such statements.
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