Frontdoor Closes Major Deal to Acquire 2-10 Home Buyers Warranty and Secures $1.47B Financing Package

Frontdoor, Inc. (NASDAQ: FTDR) has successfully finalized its acquisition of 2-10 Home Buyers Warranty following completion of regulatory clearances and satisfaction of all closing requirements. The Memphis-based home warranty leader also announced the pricing and completion of a substantial $1.47 billion credit facility structured to support the transaction.

Transaction Details and Financial Structure

The acquisition of 2-10 Home Buyers Warranty represents an all-cash deal valued at $585 million, with standard post-closing adjustments accounting for cash on hand, existing debt obligations, transaction costs, working capital requirements and regulatory capital reserves maintained within the business at closing.

The credit facility consists of three components: a $418 million Term Loan A tranche, an $800 million Term Loan B facility, and a $250 million revolving line of credit. The company deployed these proceeds to retire previous debt instruments maturing in 2026 and 2028, fund the 2-10 Home Buyers Warranty acquisition, and maintain flexibility for share repurchase programs and general corporate initiatives.

Strategic Impact and Market Expansion

According to Bill Cobb, Chairman and CEO of Frontdoor, the transaction strengthens the company’s market position by combining complementary service offerings. The 2/10 warranty portfolio, particularly the New Home Structural Warranty, extends Frontdoor’s reach into adjacent market segments while enabling cross-selling opportunities across its existing home warranty and on-demand service platforms.

This deal significantly enhances Frontdoor’s competitive positioning through immediate uplift in member enrollment, revenue contribution and profitability. The 2-10 HBW brand brings more than four decades of industry experience, having protected approximately 5.8 million residential properties and maintaining partnerships with thousands of real estate professionals, builders and service providers across the nation.

Frontdoor’s Existing Business Foundation

Frontdoor operates as a parent company overseeing American Home Shield, which commands approximately two million members and leads the home service plan category. American Home Shield offers comprehensive protection covering up to 23 essential home systems and appliances, providing homeowners with budget predictability and service convenience.

The Frontdoor app, powered by proprietary Streem technology, enables real-time video consultations connecting homeowners with qualified service experts for diagnosis and problem resolution. The platform also provides homeowners with practical benefits including do-it-yourself guidance, service discounts and additional value-adds.

2-10 Home Buyers Warranty Background

Founded and headquartered in Colorado, 2-10 Home Buyers Warranty has established itself as a trusted protection provider for new construction structural warranties and systems and appliances coverage applicable to both newly constructed and existing residences. The company’s 40+ year operating history demonstrates deep market expertise and strong relationships within the residential real estate and home services ecosystem.

Advisory Services

BofA Securities served as financial advisor to Frontdoor with legal representation provided by Simpson Thacher & Bartlett. Evercore acted as financial advisor to 2-10 Home Buyers Warranty with Ropes & Gray providing legal counsel.

Investor Relations: Matt Davis, 901-701-5199, IR@frontdoorhome.com Media Contact: Tom Collins, 901-701-5198, MediaCenter@frontdoorhome.com