JPMorgan Agents Web.com Credit Facility Refi
Web.com Group announced that it has completed the refinancing of its credit facilities. The new credit facilities consist of a $200 million secured term loan and $150 million secured revolving line of credit.
According to the company’s 8K filing, JPMorgan Chase served as administrative agent to the syndicate of lenders. JPMorgan Chase and SunTrust Bank served as co-syndication agents. Regions Bank, Fifth Third Bank, Bank of America, Barclays Bank, Wells Fargo Bank, Royal Bank of Canada, Deutsche Bank Securities and Compass Bank served as co-documentation agents.
The loans will initially bear interest at a rate equal to either, at the company’s option, LIBOR plus an applicable margin equal to 2.25% per annum, or the prime lending rate plus an applicable margin equal to 1.25% per annum. The credit facilities mature in September 2019.
“We are pleased to take advantage of the attractive debt markets to further strengthen our balance sheet and provide additional financial flexibility and liquidity. We expect that our new agreement will reduce our average cost of debt on the credit facilities by at least 200 basis points. This provides the ability to further increase investments in growth initiatives and improve bottom line results,” said David L. Brown, chairman, chief executive officer and president of Web.com.
Web.com Group is a provider of Internet services and online marketing solutions for small businesses.