BOSTON–(BUSINESS WIRE)–GoTo Group, Inc., the leading brand in making IT management, support, and business communications easy, today announced the launch of a debt exchange offer open to all of its existing term loans and its 5.50% Senior Secured Notes due 2027, pursuant to 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. The exchange offer is open to all lenders and noteholders.
The Company also confirms that on February 5, 2024, a private debt exchange transaction was consummated with holders of a majority of its Existing Term Loans and Existing Notes.
Signaling stakeholders’ confidence in the Company, certain 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 $250 million revolving credit facility for over 2 years, further strengthening the Company’s liquidity position.
The Company expects to significantly decrease its debt balance and reduce its interest expense as part of the transaction. There will be no change in GoTo’s equity ownership as a result of the transaction.
“This transaction solidifies our financial foundation, and we are encouraged by the strong support of our financial partners,” said Rich Veldran, Chief Executive Officer, GoTo. “As we drive into the future, we are well-positioned to enhance our competitive position in our markets and look forward to executing our strategic plan.”
Kirkland & Ellis LLP served as the Company’s legal advisor and PJT Partners LP served as its financial advisor in the transaction.
Paul, Weiss, Rifkind, Wharton & Garrison LLP served as legal advisor and Evercore Group LLC served as financial advisor to an ad hoc group of holders of Existing Term Loans and Existing Notes in the transaction.
The exchange of the Company’s Existing Term Loans will be open until February 12, 2024, and the exchange of the Company’s Existing Notes will be open until March 5, 2024, with an early tender date on February 16, 2024, for early exchange consideration as set forth in a Confidential Exchange Offering Memorandum (the “Exchange Offer Memorandum”). Full details of the terms and conditions of the exchange offer of the Existing Notes are described in the Exchange Offer Memorandum. Eligible holders of the Existing Notes are encouraged to read the Exchange Offer Memorandum, as it contains important information regarding the exchange offer. This press release is neither an offer to purchase nor a solicitation of an offer to buy any Existing Notes. Holders of Existing Notes may go to www.dfking.com/goto to confirm their eligibility to participate in the exchange.
This press release is for informational purposes only and does not constitute an offer to sell, or a solicitation of an offer to buy, any security and does not constitute an offer, solicitation or sale of any security in any jurisdiction in which such offer, solicitation or sale would be unlawful. The Exchange Offer is being made in reliance on the exemption from registration provided by Section 4(a)(2) of the Securities Act of 1933, has not been registered with the Securities and Exchange Commission and relies on exemptions under state securities laws.
About GoTo
GoTo makes IT and business communications easy, so its customers can do what matters most. Featuring flagship products GoTo Resolve, GoTo Connect, and LogMeIn Rescue, the GoTo portfolio helps securely support and connect businesses to what’s most important: their teams and customers. For over 20 years, the company has been dedicated to robust security, including zero trust authentication, and powers more than 1 billion remote support sessions and 1 million customers with easy-to-use, built-for-IT solutions that save businesses time and money. With over $1 billion in annual revenue, the remote-centric company is headquartered in Boston, Massachusetts, with more than 3,000 GoGetters across North America, South America, Europe, Asia, and Australia.
