Daily News: November 19, 2012

J.P. Morgan, Others Arrange Upsized Web.com Facility


Web.com Group, a provider of internet services and online marketing solutions for small businesses, announced that due to increased participation in its current debt re-pricing, the company has chosen to upsize its first lien credit facility at an improved interest rate, and plans to use the proceeds to significantly pay down its more expensive second lien term loan.

Subject to fulfillment of customary closing conditions, the company expects to enter into a revised first lien credit facility, which will include a first lien term loan of $629.5 million at an interest rate of LIBOR plus 4.25%, with a LIBOR floor of 1.25%, as well as a revolving credit facility of $60 million at an interest rate of LIBOR plus 3.75% with no LIBOR floor. Other terms and conditions of the first lien term loan remain substantially the same.

J.P. Morgan Securities, Deutsche Bank Securities, SunTrust Robinson Humphrey, Goldman Sachs Lending Partners, Citigroup Global Markets and Wells Fargo Securities acted as joint lead arrangers and joint bookrunners.

Using the proceeds from the revised first lien term loan, the company expects to reduce its second lien term loan, which had a balance of $120 million outstanding on Sept. 30, 2012, by $60 million at closing. The new first lien credit facility is expected to close on Tuesday, November 20, 2012.