Web.com to use $200 million term loan, revolver draw for Yodle buy

By Sara Rosenberg

New York, Feb. 11 – Web.com Group Inc. plans to use a $200 million term loan and about $100 million in borrowings under its revolving credit facility to fund the acquisition of Yodle, according to a news release.

Pricing on the term loan and revolver is Libor plus 300 basis points with step-downs based on leverage, the release said.

On a pro-forma basis as of Dec. 31, 2015, the company would have had about $756 million of gross debt representing a leverage ratio of 4 times pro-forma adjusted EBITDA, including full run rate synergies of $30 million.

Under the agreement, Yodle is being bought for $300 million paid at close, $20 million to be paid at the first anniversary of the closing date and $22 million paid at the second anniversary of the closing date.

Closing is expected by the end of this quarter, subject to customary conditions, including regulatory approval under the Hart-Scott-Rodino Antitrust Improvement Act.

J.P. Morgan Securities LLC, BofA Merrill Lynch and Barclays served as financial advisers to Web.com, and Credit Suisse acted as financial adviser to Yodle.

Web.com is a Jacksonville, Fla.-based provider of internet services and online marketing solutions for small businesses. Yodle is a New York-based digital marketing company.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.