Market Overview

Web.com Plans to Amend, Raise, Re-Price First Lien Credit Facility

Related WWWW
Mid-Day Market Update: Genworth Declines On Downbeat Earnings; Sierra Wireless Shares Spike Higher
Mid-Morning Market Update: Markets Edge Lower; DirecTV Profit Tops Estimates

Web.com Group, Inc. (Nasdaq: WWWW) (the "Company"), a leading provider of internet services and online marketing solutions for small businesses, today announced that it plans to amend, increase and re-price its First Lien Credit Facility and use the proceeds of such increase to repay the remaining balance of its Second Lien Term Loan. A lender conference call with the Company, together with J.P. Morgan Securities LLC, Deutsche Bank Securities Inc., SunTrust Robinson Humphrey, Inc., Goldman Sachs Lending Partners, Citigroup Global Markets Inc. and Wells Fargo Securities, LLC, as joint lead arrangers and joint bookrunners, is scheduled for Wednesday, February 13, 2013 at 10:30 a.m. EST.  

The Company will seek improved terms on its First Lien Term Loan, which has a current interest rate of LIBOR (London Interbank Offered Rate) plus 4.25%, with a LIBOR floor of 1.25%, and a balance of approximately $628 million at December 31, 2012. The Company will seek to increase the size of the First Lien Term Loan to $660 million to repay in full the remaining balance of the Second Lien Term Loan, which was approximately $32 million at December 31, 2012. The Company also expects that its Revolving Credit Facility, which currently has an interest rate of LIBOR plus 3.75% (with no LIBOR floor), will be increased by $10 million and amended to reflect reduced pricing.

Since the Network Solutions acquisition in October 2011, the Company has reduced its debt balance by $70 million.

Posted-In: News Financing

 

Related Articles (WWWW)

Around the Web, We're Loving...

Get Benzinga's Newsletters