Web.com launches $570 million term loan B at Libor plus 425 bps

By Sara Rosenberg

New York, Oct. 26 - Web.com Group Inc. launched with a call on Friday morning its roughly $570 million first-lien term loan B due October 2017 with pricing of Libor plus 425 basis points with a 1.25% Libor floor and an original issue discount of 99 to 991/2, according to a market source.

The term loan B has 101 soft call protection for one year, the source said.

Proceeds will be used to reprice and existing first-lien term loan that was obtained in October 2011 at a size of $600 million and with pricing of Libor plus 550 bps with a 1.5% Libor floor.

In addition to the repricing, the company is looking to upsize its revolver to $60 million from $50 million.

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 are the joint lead arrangers and joint bookrunners on the deal.

The company also has a roughly $120 million second-lien term loan, but is not seeking a repricing of that debt at this time.

Web.com is a Jacksonville, Fla.-based provider of internet services and online marketing services for small businesses.

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