Bloomberg: General Atlantic looking to provide $2 billion debt financing to Shutterfly

Bloomberg reports that debt-burdened photo personalization leader Shutterfly is in talks with private credit lenders led by General Atlantic are in talks to provide about $2 billion of debt, citing “people with knowledge of the matter.” Proceeds would refinance some of the company’s high-yield bonds and leveraged loans, the people said, asking not to be identified discussing a private transaction. The company has about $2.5 billion of gross debt — or $2.4 billion of net debt — through the end of September, according to the reporting from Paula Seligson and Davide Scigliuzzo.

Shutterfly was bought by Apollo Global Management Inc. in 2019 is facing significant near-term maturities. About 84% of the company’s debt is expected to come due between 2026 and 2027, according to a Moody’s Ratings report from May. In June, S&P Global Ratings upgraded the company by one notch to B-, or six steps into junk. The ratings firm cited improved credit metrics from cost cutting and now sees the company as having sufficient cash flow to service and refinance its debt, according to the report. S&P expects Shutterfly to generate about $353 million of adjusted earnings before interest, taxes, depreciation, and amortization in 2025, up from original projections.