The European hosting and software group team.blue has moved €1.1 billion of its €1.35 billion Term Loan B from a September 2029 maturity to July 2032. The amendment and extension priced on October 22 and was announced a day later. After the transaction, about 90 percent of the group’s term debt falls due in 2032.

The deal launched at a minimum of €500 million and was upsized twice on demand from institutional investors. The company describes it as the largest software euro term loan issuance of the past 12 months.

Key facts

  • Pricing: a margin of 425 basis points (4.25 percentage points) over the euro reference rate, a 0% floor and an original issue discount of 98.5.
  • January attempt: an extension of the same loan was withdrawn in January amid a software sell-off, when price talk was a margin of 350 basis points at par.
  • Ratings: B3 from Moody’s and B from S&P, both with stable outlooks.
  • Outside the deal: the other €250 million of the euro Term Loan B was not part of the extension.
team.blue Added 600,000 Customers and Still Rounds to 3.3 Million. The Report Says Nothing About the Ones Who Left.

An Extension of Existing Debt, Not New Borrowing

A Term Loan B is a loan arranged by banks and held mainly by institutional investors, with most of it repaid at maturity. In an amendment and extension, the borrower and its lenders agree to push back the due date of an existing loan on amended terms. The borrower is team.blue Finco S.à r.l., and BofA acted as global coordinator alongside Barclays, with ABN AMRO, BNP Paribas, Citi, ING and J.P. Morgan as bookrunners.

The extended tranche carries a margin of 425 basis points over the euro reference rate. The 0% floor stops that reference rate from counting as negative when interest is calculated, and the original issue discount of 98.5 adds to the lenders’ return on top of the margin. Moody’s rates the company and the facility B3 and S&P rates them B, both with stable outlooks. Both ratings sit in the speculative-grade range.

The October deal followed an earlier attempt. On January 22, team.blue launched an extension of the same euro loan to July 2032, together with a repricing of its dollar term loan, according to PitchBook. Citing sources, PitchBook reported on January 30 that both had been withdrawn amid that week’s sell-off in software stocks. Price talk on the euro loan had pointed to an unchanged margin of 350 basis points, with the loan offered at par. In October, the margin came in 75 basis points higher, and the loan was priced at 98.5 instead of par.

According to the company, the October order book was heavily oversubscribed, and the deal grew “despite recent credit market volatility.” Chief financial officer Jonathan Thackray put the outcome against the original target: “We set out to extend €500 million of our Term Loan B, and the depth of support from our institutional investor base allowed us to go much further.”

The other €250 million of the euro loan was not part of the extension. The 90 percent figure covers all term debt, not only the euro loan. In January, PitchBook also reported a $771 million term loan denominated in dollars, due in July 2032.

Get one-on-one advice on maximizing your hosting company’s valuation and navigating the sale process.

Book a consultation

€866 Million in Annual Recurring Revenue

The announcement links the transaction to “continued double-digit revenue growth and strong cash generation supporting its deleveraging trajectory,” without giving numbers. The release that accompanied the group’s Year in Review 2025 in July puts annual recurring revenue at €866 million and organic revenue growth at 11 percent. The report itself shows reported revenue of €784 million in FY2025, up from €616 million a year earlier. The group now puts its customer base at more than 3.5 million in 24 countries.

Shareholders, Acquisitions and a New Chief Executive

The group’s backers are Hg, which first invested in 2019, CPP Investments and Sofina. CPP Investments paid about €550 million for about 20 percent in July 2024, in a transaction that valued team.blue at €4.8 billion.

According to the July release, M&A “remained a core growth lever for team.blue in 2025,” contributing around €300 million in acquired revenue since 2020. Deals announced this year include the acquisition of Storyclash by team.blue’s brand Kolsquare and a strategic investment in Windsor.ai, both in January, and the acquisition of Saleskit in March.

The deal was agreed during a leadership handover. Under a succession plan announced on September 3, Ido Erlichman becomes chief executive on January 1, 2027, after a period as deputy chief executive from September 7. He succeeds Claudio Corbetta, who stays on the board as deputy chair after 26 years leading Register.it and team.blue.

For owners of smaller hosting and SaaS businesses, the extension is news about an active buyer. It gives team.blue more time before its next large term-debt maturity, but it is not new money for acquisitions, and the debt itself stays in place.

For an owner considering an approach from such a buyer, an outside view can be useful in understanding how the buyer is likely to read the business. A one-on-one M&A consultation can provide that perspective before talks begin.