Web.com readies launch of $750 million of term loans for Wednesday

By Sara Rosenberg

New York, Sept. 19 - Web.com has set a bank meeting for 11 a.m. ET on Wednesday to launch its proposed $750 million of senior secured term loan debt, according to a market source.

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 debt includes a $600 million seven-year first-lien term loan B and a $150 million eight-year second-lien term loan, the source said.

Official price talk on the facility is still to be determined, the source said. However, according to filings with the Securities and Exchange Commission, the first-lien term loan B is expected at Libor plus 425 basis points with a 1.25% Libor floor and the second-lien term loan is expected at Libor plus 800 bps with a 1.25% Libor floor.

The filings also said that the second-lien term loan would have call protection of 102 in year one and 101 in year two.

In addition to the term loans, the credit facility is anticipated to include a $50 million five-year revolver at Libor plus 425 bps, based on the regulatory filings.

Proceeds will help fund the acquisition of Network Solutions from General Atlantic LLC for $405 million in cash and 18 million shares of common stock, refinance existing debt and for general corporate purposes.

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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