Business
Frontdoor, Inc. Launches $1.47 Billion Credit Facility to Fund Acquisition of 2-10 Home Buyers Warranty and Refinance Debt
Company Has Obtained State of California Regulatory Approval 2-10 Acquisition Expected to Close in Mid-December MEMPHIS, Tenn.--(BUSINESS WIRE)-- Frontdoor,
About this update from Frontdoor, Inc.
[{"type":"text","content":"\nCompany Has Obtained State of California Regulatory Approval\n\n\n2-10 Acquisition Expected to Close in Mid-December\n\n\n MEMPHIS, Tenn.--(BUSINESS WIRE)--\nFrontdoor, Inc. (NASDAQ: FTDR), the nation’s leading provider of home warranties, today announced it has launched the syndication of a new $1.47 billion credit facility to fund the acquisition of 2-10 Home Buyers Warranty and to refinance the company’s existing credit facilities.\n\n\nThe $1.47 billion credit facility is expected to be comprised of a $418 million Term Loan A, an $800 million Term Loan B, and a $250 million revolving credit facility.\n\n\n“We are nearly there on completing the acquisition and we are even more excited now about what 2-10 can do for our company,” said Bill Cobb, Frontdoor, Inc.’s Chairman & Chief Executive Officer. “We are taking advantage of the strong debt capital market to opportunistically refinance our existing credit facilities as well as finance the 2-10 acquisition. This transaction also extends our debt maturities and provides the financing for potential future share repurchases.”\n\n\nThe company also announced that the State of California has approved the acquisition and expects to close the 2-10 acquisition in mid-December 2024, subject to satisfaction of remaining closing conditions.\n\n\nThere can be no assurances that the company will be successful in its debt marketing efforts. Closing of the credit facilities, which is anticipated to occur in mid-December 2024, is subject to market conditions, as well as the negotiation and execution of definitive documents and the satisfaction of customary closing conditions under the credit facilities, including the concurrent closing of the 2-10 acquisition.\n\n\nAbout Frontdoor, Inc.\n\n\nFrontdoor is reimagining how homeowners maintain and repair their most valuable asset – their home. As the parent company of two leading brands, we bring over 50 years of experience in providing our members with comprehensive options to protect their homes from costly and unexpected breakdowns through our extensive network of pre-qualified professional contractors. American Home Shield, the category leader in home warranties with approximately two million members, gives homeowners budget protection and convenience, covering up to 23 essential home systems and appliances. Frontdoor is a cutting edge, one...