Endurance International Group Inc.’s $350 million term loan, which backs the acquisition of the company from Accel-KKR Co. by Warburg Pincus LLC and GS Capital Partners, rose in initial trading.
The six-year debt began trading at 99.5 cents on the dollar, according to data provider Markit Ltd. The financing was sold to investors at 98 cents, Bloomberg data show.
Credit Suisse Group AG arranged the deal for Burlington, Massachusetts-based Endurance, Bloomberg data show. The loan pays interest at 6.25 percentage points more than the London interbank offered rate, with a 1.5 percent floor.
Warburg and GS Capital, a private-equity investment arm of Goldman Sachs Group Inc., are buying Endurance International for an undisclosed amount from Accel-KKR, according to a Nov. 7 statement distributed by PRNewswire. Endurance’s current management team and Accel-KKR will maintain an interest in the company, the statement said.
In a revolving credit facility, money can be borrowed again once it’s repaid; in a term loan, it can’t.
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