Web.com readies launch of $660 million term loan B for Wednesday

By Sara Rosenberg

New York, Feb. 12 - Web.com Group Inc. is scheduled to hold a conference call at 10:30 a.m. ET on Wednesday to launch a new $660 million term loan B, according to sources.

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.

Price talk on the term loan B is Libor plus 325 basis points to 350 bps with a 1% Libor floor and an offer price that is still to be determined, sources said.

The B loan has 101 soft call protection for six months.

Proceeds will be used to refinance a roughly $628 million first-lien term loan that is priced at Libor plus 425 bps with a 1.25% Libor floor and repay in full a roughly $32 million second-lien term loan.

In addition, the company expects to increase its revolver by $10 million and amend it to reflect reduced pricing. Current revolver pricing is Libor plus 375 bps with no Libor floor.

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

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