Web.com $800 million facility anticipated September/October business

By Sara Rosenberg

New York, Aug. 23 - Web.com's proposed $800 million senior secured credit facility is expected to come to market sometime in the September/October timeframe, a market source told Prospect News.

J.P. Morgan Securities LLC, Deutsche Bank Securities Inc., Goldman Sachs & Co. and SunTrust Robinson Humphrey Inc. are the joint lead arrangers and bookrunners on the deal.

The facility consists of a $50 million five-year revolver expected at Libor plus 425 basis points, a $600 million seven-year first-lien term loan B expected at Libor plus 425 bps with a 1.25% Libor floor and a $150 million eight-year second-lien term loan expected at Libor plus 800 bps with a 1.25% Libor floor, according to a PREM14A filed with the Securities and Exchange Commission on Tuesday.

The second-lien term loan is expected to have call protection of 102 in year one and 101 in year two, the filing said.

Proceeds will be used to help fund the acquisition of Network Solutions from General Atlantic LLC for $405 million in cash and 18 million shares of common stock.

As part of the transaction, Network Solutions' existing debt of roughly $204 million will be refinanced, as will Web.com's $84 million of debt.

Completion of the acquisition is expected in the fourth quarter, subject to Web.com shareholder approval and customary regulatory approvals and conditions.

At the close, General Atlantic and other current Network Solutions shareholders are expected to own about 37% of Web.com.

Leverage is 4.0 times through the first-lien and 5.0 times through the second-lien.

Web.com is a Jacksonville, Fla.-based provider of internet services and online marketing solutions. Network Solutions is a Herndon, Va.-based provider of website services, online marketing and domain name registration.

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