Citco Group changes surface on term loans; GoDaddy shops new term loan B

By Sara Rosenberg

New York, Oct. 19 – In the primary market on Wednesday, Citco Group increased the size of its term loan A and decreased the size of its term loan B while reducing the spread and tightening the original issue discount.

And, in more happenings, GoDaddy Inc. came to market on Wednesday with a new term loan B that will replace an existing term loan B.

Citco revised

Citco Group trimmed its 5˝-year term loan B to $440 million from $520 million, cut pricing to SOFR plus 350 basis points from SOFR plus 375 bps and adjusted the original issue discount to 97.5 from 97, according to a market source.

Additionally, the company raised its five-year term loan A to $355 million from $275 million, the source said.

As before, the term loan B has a 0.5% floor and 101 soft call protection for one year, and the term loan A is priced at SOFR plus 275 bps with a 0.5% floor and an original issue discount of 98.5.

Recommitments were due at 1 p.m. ET on Wednesday, the source added.

Stone Point Capital Markets, UBS Investment Bank, JPMorgan Chase Bank, Citizens, U.S. Bank and Truist are leading the deal. UBS is the administrative agent.

The new debt will be used to refinance an existing term loan B due September 2023 priced at Libor plus 250 bps with a 0% Libor floor.

Citco is a provider of financial services to hedge funds, private equity and real estate firms, institutional banks, companies and high net worth individuals.

GoDaddy holds call

GoDaddy hosted a lender call at 11 a.m. ET to launch a $1.77 billion seven-year term loan B (Ba1/BB) talked at SOFR plus 325 bps with a 0% floor, an original issue discount of 97.5 and 101 soft call protection for six months, market sources remarked.

Commitments are due at 11 a.m. ET on Friday, sources continued.

RBC Capital Markets is the left lead on the deal that will be used to refinance an existing $1.77 billion term loan B due 2024 priced at Libor plus 175 bps with a 0% Libor floor.

The company’s existing term loan B due 2024 was quoted in trading at 99 5/8 bid, par 1/8 offered and its existing 2027 term loan was quoted at 98˝ bid, 99˝ offered on Tuesday, and levels were pretty much unchanged on Wednesday on both tranches following the launch of the new transaction, a trader added.

GoDaddy is Tempe, Ariz.-based provider of web hosting and domain names.

Fund flows

In other news, actively managed loan fund flows on Tuesday were negative $128 million and loan ETFs were positive $27 million, sources said.

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