Moody’s upgrades Go Daddy

Moody’s Investors Service said it upgraded Go Daddy Operating Co., LLC’s corporate family rating to Ba3 from B1 and probability of default rating to Ba3-PD from B1-PD.

Moody’s also said it affirmed the Ba3 rating on Go Daddy’s first-lien credit facilities and revised the outlook to stable from negative.

The ratings affirmed include the Ba3 (LGD 3) on its $150 million senior secured revolving credit facility and Ba3 (LGD 3) rating on its $1.1 billion senior secured term loan.

The upgrades reflect Go Daddy’s planned $300 million of debt repayment using the proceeds of the initial public offering of its common stock, Moody’s said.

The agency also said it assigned an SGL-1 speculative grade liquidity rating, reflecting Go Daddy’s very good liquidity.

The redemption of debt and increase in cash by about $125 million from the proceeds of the IPO will significantly enhance Go Daddy’s financial flexibility to support its growth initiatives, Moody’s said.

Based on the company’s adjusted EBITDA, total debt-to-EBITDA is expected to decline by about 1.1x, the agency said.

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