Business Context and Reporting Period
Company: GoDaddy Inc.
Filing Type: Form 8-K (Current Report)
Date of Report: May 24, 2017
Event: Entry into a Material Definitive Agreement involving technical amendments to existing credit facilities.
Key Financial Metrics
This filing does not report specific financial performance metrics such as revenue, profit, cash flow, or margins. The document focuses exclusively on the modification of debt covenants.
Material Changes Versus Prior Period
The company executed Technical Amendments to two existing agreements to correct errors regarding "Restricted Payments":
- Agreements Amended:
- Second Amended and Restated Credit Agreement (dated February 15, 2017).
- Bridge Credit Agreement (dated April 3, 2017).
- Parties Involved: Go Daddy Operating Company, LLC, GD Finance Co, Inc., Desert Newco, LLC, and Barclays Bank PLC (as Administrative Agent).
- Specific Modification: Section 10.5(a)(iii)(A) of both agreements was modified. The "build up" exception to the Restricted Payments covenant was increased from 50% to 100% of GoDaddy Inc.'s Consolidated EBITDA for the period from April 1, 2014, to the end of the most recently ended fiscal quarter, less 1.5 times Fixed Charges.
Guidance, Outlook, and Risks
Management Commentary: The amendments were entered into solely to correct errors in the provisions relating to Restricted Payments. No new financial guidance or outlook was provided in this filing.
Risks and Contingencies: The filing does not disclose new risks or contingencies beyond the correction of the covenant language.
Important Facts for Investor Verification
- Verify the full text of the Technical Amendments filed as Exhibits 10.1 and 10.2 to this 8-K.
- Confirm the impact of the increased "build up" exception (100% vs. 50% of Consolidated EBITDA) on the company's ability to make restricted payments (e.g., dividends, share repurchases) under the credit agreements.
- Review the definitions of "Consolidated EBITDA" and "Fixed Charges" within the original Credit Agreement and Bridge Agreement to understand the calculation basis for the covenant.