Frontdoor, Inc. announced on December 5, 2024, the launch of syndication for a new $1.47 billion credit facility. This facility is intended to fund the acquisition of 2-10 Home Buyers Warranty and refinance the company’s existing credit facilities.
The credit facility is expected to consist of a $418 million Term Loan A, an $800 million Term Loan B, and a $250 million revolving credit facility. This financing move aims to extend debt maturities and provide capital for potential future share repurchases.
Additionally, Frontdoor confirmed that the State of California has approved the 2-10 acquisition, with the closing expected in mid-December 2024. This regulatory clearance is a significant step towards completing the strategic acquisition.
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