team.blue refinances €1.1 billion loan, extends maturity

team.blue has refinanced and extended €1.1 billion of its existing Term Loan B, pushing the maturity of that tranche to July 2032.

Strong demand from institutional investors allowed the group to increase the transaction from an initial minimum of €500 million, despite volatility in credit markets.

The refinancing covers part of team.blue's existing €1.35 billion Term Loan B and extends the refinanced tranche from its previous September 2029 maturity. On a pro forma basis, about 90% of its term debt now matures in 2032.

team.blue, which provides digital services to small and medium-sized businesses across Europe, said the loan was priced at 425 basis points over Euribor, with a 0% floor and an original issue discount of 98.5. It described the transaction as the largest software euro term loan issuance in the past 12 months.

BofA acted as global coordinator and left lead physical bookrunner alongside Barclays. ABN AMRO, BNP Paribas, Citi, ING and J.P. Morgan also acted as bookrunners.

Corporate and facility ratings were B3 from Moody's and B from S&P, both with stable outlooks.

Investor demand

The financing comes as team.blue reports double-digit revenue growth and strong cash generation, which it said support a broader deleveraging path. The company serves more than 3.5 million customers in 24 countries across web hosting, domains, email, cloud services, eCommerce, payments and compliance tools.

Its backers include Hg, CPP Investments and Sofina.

Chief Financial Officer Jonathan Thackray highlighted the scale of investor interest in the transaction.

"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. This reflects confidence in team.blue's highly recurring, cash-generative model and our position as a leading digital partner for Europe's SMBs. It gives us the flexibility to keep innovating and investing in the digital and AI-enabled tools our customers rely on," Thackray said.

AI focus

Alongside the refinancing, team.blue pointed to growing demand for products that use artificial intelligence. It said AI-enabled products are increasing annual recurring revenue at roughly twice the rate of non-AI products and accounted for around half of new-customer annual recurring revenue by December 2025.

The trend has become more central to its product strategy. In 2025, the group launched an AI agent for customer onboarding and support inside its control panel and said it has been adding new functions each month as it moves its software portfolio towards Model Context Protocol readiness.

That stage would allow external AI agents to operate a product without human involvement, according to the company.

Deal activity

Acquisitions have also remained part of the group's growth strategy. team.blue said mergers and acquisitions have contributed about €300 million in acquired revenue since 2020.

Recent deals included Macaly, a Czech AI web application builder, and Windsor.ai, a marketing data integration platform. team.blue said Windsor.ai recorded threefold growth in new monthly recurring revenue in the month after listing its MCP server on the Anthropic Claude marketplace.

Management said it treats acquisitions as a way to expand products rather than as a balance-sheet exercise. It assesses targets on whether they add to an existing product cluster, bring in founders with specialist expertise and help accelerate organic growth.

That approach is tied to its founder-operator model. team.blue said more than 90% of founders who join the group stay beyond their earn-out period.

The refinancing gives the company a longer debt runway as it balances acquisitions, product development and investment in AI-related services for small business customers across Europe.