GoTo’s debt exchange offer gets 99.99% participation from term lenders

By William Gullotti

Buffalo, N.Y., Feb. 14 – GoTo Group, Inc. received 99.99% participation from the term lenders involved in its debt exchange offer for all of its existing term loans, according to a press release on Wednesday.

The offer also covered its 5˝% senior secured notes due 2027.

As previously reported, the company confirmed that a private debt exchange transaction had already been consummated with holders of a majority of its existing term loans and existing notes.

Upon closing of the term loan offer on Feb. 12, 99.99% of existing term loan holders committed to participate in the exchange offer.

The note exchange offer remains open, with an early tender deadline of Feb. 16 and a March 5 expiration.

As previously reported, the exchange offer was open to all lenders and noteholders, with all participants receiving new term loans or new notes, as applicable. The new term loans/notes come with an improved security position, tighter covenants and other restrictions.

Some lenders collectively invested $100 million in connection with the closing of the debt exchange.

In addition, concurrent with the closing of the private debt exchange, 100% of the revolving lenders agreed to extend the maturity of the company’s $250 million revolver for over two years, further strengthening the company’s liquidity position.

The company noted that there will be no change in its equity ownership as a result of the transaction.

Noteholders may go to www.dfking.com/goto to confirm their eligibility to participate in the exchange.

Requests for the exchange offer memorandum and other documents relating to the exchange offer may be directed to D.F. King & Co., Inc. (800 967-5079 or 212 269-5550; goto@dfking.com), the exchange agent and information agent.

Kirkland & Ellis LLP acted as the company’s legal adviser, and PJT Partners LP was its financial adviser in the transaction.

Paul, Weiss, Rifkind, Wharton & Garrison LLP acted as legal adviser, and Evercore Group LLC was financial adviser to an ad hoc group of holders of existing term loans and existing notes in the transaction.

GoTo is a Boston-based IT management, support and business communications company.

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