GoTo Group has announced the launch of a debt exchange offer after raising $100 million in fresh capital.
Certain lenders collectively invested $100 million with the closing of the debt exchange, with GoTo stating this demonstrates their confidence in the company.
As well as the debt exchange closing with significant funds, all revolving lenders unanimously agreed to extend the timeframe on GoTo’s $250 million revolving credit facility for over two years, bolstering the Company’s liquidity position.
Rich Veldran, newly appointed Chief Executive Officer at GoTo, commented:
This transaction solidifies our financial foundation, and we are encouraged by the strong support of our financial partners. 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.”
What Were More Specific Details?
The exchange offer is open to all of its Existing Term Loans and its 5.50 percent Senior Secured Notes due 2027, or the “existing notes”. This is “pursuant to an agreement with a majority of holders of its Existing Term Loans and Existing Notes”.
GoTo said that all participants in the exchange would receive new term loans or notes with enhanced security and stricter covenants. The debt exchange offer is available to all lenders and noteholders.
On Monday, February 5, a private debt exchange transaction was completed with holders of a majority of its Existing Term Loans and Existing Notes.
As a consequence of the transaction, GoTo anticipates a substantial reduction in its debt balance and interest expenses. However, there will be no impact on GoTo’s equity ownership as a result.
A Significant Start to 2024 For GoTo
Last month, former CFO Veldran replaced Paddy Srinivasan as CEO with the remit of overseeing the company’s finances while implementing its growth strategy. Srinivasan was GoTo CEO for almost ten years before leaving to become the CEO of Digital Ocean.
Veldran joined GoTo as its CFO over three years ago and was reportedly critical in achieving GoTo’s aim of “making IT easy”, with a CV illustrating over 30 years of experience as a strategy, finance, and operations leader for Dun & Bradstreet, ADP, and Procter & Gamble.
Mike Kohlsdorf, the Chairman of the Board of GoTo, enthused about Valdran’s capacity to take the company forward as CEO: “He brings a deep understanding of the business and is well-positioned to continue driving GoTo’s success with an outstanding suite of products and a strategy to invest in technology that will better serve corporations and organizations around the world.”
What Did GoTo Get Up To in 2023?
As with other major vendors, 2023 was the year of AI for GoTo.
Firstly, in March, GoTo enhanced its UCC and IT segments by integrating OpenAI’s ChatGPT into its GoTo Customer Engagement and GoTo Resolve products.
The business launched an early availability look at its beta ChatGPT message assistant for its new GoTo Customer Engagement solution to support message writing and campaign creation, increase the speed of response to customers and save time for employees. Likewise, a ChatGPT integration into GoTo Resolve would ease the creation and running of IT automation scripts to increase employee productivity.
In October, GoTo announced a sweeping range of new features for GoTo Resolve and Connect, including AI and security enhancements, to address the needs of the changing digital workplace.
These encompassed improved security and compliance capabilities for customers’ critical IT management tools, better integrated and more navigable workflows, AI-powered and automated tasks, and more effective ways to serve customers on any device.
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