Technology
Squarespace takeover by Permira gets a $2.65 billion credit boost from a trio of lenders.
May
In a strategic move set to reshape the digital landscape, Permira Holdings gears up for the acquisition of Squarespace Inc., backed by a substantial $2.65 billion credit facility. Sources close to the negotiations reveal exclusive details on the funding structure.
A Unified Front: Lenders Step In
Privately, three credit lenders, led by Blackstone Inc., form the financial backbone. Blackstone secures half the loan, while Blue Owl Capital Inc. and Ares Management Corp. each claim a quarter. Anonymity shrouds insiders, highlighting operation confidentiality.
Blueprint of the Facility Unveiled
The credit facility includes a $2.1 billion term loan, a $300 million delayed draw loan, and a $250 million revolving credit facility. Blue Owl assumes the crucial role of administrative agent, orchestrating the intricate financial arrangement.
Navigating the Financial Landscape
The impending transition into private ownership marks a significant milestone for Squarespace, igniting discussions on the company’s financial trajectory. With outstanding debt surpassing $500 million, the infusion of new capital promises to escalate borrowing expenses, reshaping the company’s financial landscape.
Squarespace’s shift to private ownership fuels financial debates, with $500+ million debt and capital infusion implications, Barron’s Print Edition said.
The Fine Print: Interest Rates and Terms
Insiders divulge critical details, shedding light on the anticipated interest rates and pricing dynamics. The private loan is poised to carry an interest rate of 5 percentage points above the benchmark, offered at a reduced price of 99 cents on the dollar. Flexibility remains paramount, with the potential for the spread to decrease to 4.75 percentage points based on leverage.
Investor Confidence Prevails
Despite the intricacies of the deal, existing investors General Atlantic and Accel reaffirm their commitment, poised to reinvest in Squarespace’s future. The agreement underscores investor confidence in the company’s growth trajectory.
Looking Ahead: Closure on the Horizon
As the pieces fall into place, Squarespace sets its sights on a targeted closure by the fourth quarter of 2024. The impending acquisition stands as a testament to strategic foresight and collaborative synergy among key industry players.
Silence Amidst Speculation
Despite mounting anticipation, stakeholders maintain a discreet stance. Spokespersons for Squarespace, Blackstone, Blue Owl, Ares, General Atlantic, and Accel decline to offer comments, leaving room for speculation amidst the industry chatter.
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