LONDON, Jan 10 (Reuters) - HSBC, JP Morgan and Societe Generale have joined a 1.85bn-equivalent loan financing backing US-based website domain name provider GoDaddy’s 1.69bn acquisition of peer Host Europe Group, banking sources said on Tuesday.
GoDaddy, owned by private equity firms KKR and Silver Lake, announced last month it will buy Host Europe from private equity firm Cinven, which acquired the business in 2013 for £438m, following a report from Thomson Reuters LPC in November that the two companies were in exclusive talks.
HSBC, JP Morgan and Societe Generale have joined the financing as mandated lead arrangers, alongside lead banks Barclays, Citigroup, Deutsche Bank and RBC, the sources said.
The loan is expected to launch for syndication to investors this month, the sources said.
Go Daddy was not immediately available to comment.
The fully committed debt financing includes a 1.3bn-equivalent incremental term loan, split into a dollar-denominated tranche and a euro-denominated tranche, set to pay 275bp-300bp over Euribor/Libor.
There is also a 500m-equivalent bridge loan, which will pay 275bp over Euribor, as well as a US$50m revolving credit facility, the company said.
The bridge is expected to be repaid in order for the company to reduce debt in 2017, if it sells part of the business. GoDaddy said it would explore options for HEG’s PlusServer managed hosting business, including a possible sale.
HEG, whose customer base is similar to GoDaddy‘s, is one of Europe’s largest independent web hosting firms, and operates brands such as 123Reg, Domain Factory, Heart Internet and Host Europe. (Editing by Christopher Mangham)