Benzinga | May 10, 2021 08:50AM EDT

Frontdoor Announces Refinancing Transaction; Co. To Use Cash On Hand And Issue New Term Loans As Well As New Revolving Credit Facility To Repay $350M 6.750% Senior Notes Due 2026

Frontdoor, Inc. (NASDAQ:FTDR), the nation's leading provider of home service plans, today announced that it is launching a refinancing transaction to significantly reduce annual interest expense and extend maturities.

This action is expected to include using cash on hand and issuing new term loans as well as a new revolving credit facility to repay the existing $350 million 6.750% Senior Notes due 2026 (the "Notes"), as well as refinance the existing credit facility comprised of a revolving credit facility due in 2023 and a Term Loan B due in 2025.

As a result of this transaction, the company expects to reduce gross leverage, reduce its weighted average interest rate and extend its average maturity.

Finalized details relating to the transactions will be made public at transaction closing, which is expected in June.

This press release shall not constitute the solicitation of an offer to buy any Notes, nor shall there be any solicitation of the Notes in any jurisdiction in which such offer, solicitation or sale would be unlawful.