GoTo launches debt exchange offer covering term loans, 2027 notes

By Marisa Wong

Los Angeles, Feb. 5 – GoTo Group, Inc. announced the launch of a debt exchange offer open to all of its existing term loans and its 5˝% senior secured notes due 2027 under an agreement with a majority of holders of its existing term loans and existing notes.

All exchange participants will receive new term loans or new notes, as applicable, with an improved security position and tighter covenants and other restrictions, according to a Monday press release.

The exchange offer is open to all lenders and noteholders, the company said.

The company confirmed that on Monday, a private debt exchange transaction was already consummated with holders of a majority of its existing term loans and existing notes.

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 said it expects to significantly decrease its debt balance and reduce its interest expense as part of the transaction.

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

The exchange of the company’s existing term loans will be open until Feb. 12, and the exchange of the notes will be open until March 5, with an early tender date on Feb. 16.

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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