Web.com refinances with $800 million revolver, term loan due 2023

By Sarah Lizee

Olympia, Wash., May 3 – Web.com Group, Inc. amended its credit agreement with JPMorgan Chase Bank, NA as administrative agent on April 30 to provide for a $400 million revolving credit facility and a $400 million term loan facility, according to an 8-K filing with the Securities and Exchange Commission.

The revolver, which was undrawn at closing, replaces the company’s existing $260 million revolver. The term loan was fully funded at closing.

The amendment also extended the maturity of both the revolver and term loan to April 30, 2023 from March 31, 2021.

Borrowings bear interest at Libor plus a margin that ranges from 150 basis points to 250 bps per annum, based on the consolidated first-lien net leverage ratio. Initial interest is Libor plus 175 bps.

The commitment fee ranges from 25 bps to 40 bps per annum and is based on undrawn availability under the revolver.

Loans under the term loan will amortize in quarterly installments of $5 million, beginning with the fiscal quarter ending Dec. 31.

The company used the proceeds of the term loan to repay loans outstanding under the existing credit agreement and to pay related fees and expenses.

Future revolver borrowings will be used for general corporate purposes, including repayment of its $258.75 million of outstanding senior convertible notes due Aug. 15, 2018 at maturity.

JPMorgan Chase, Merrill Lynch, Pierce, Fenner & Smith Inc., BMO Capital Markets Corp., BBVA Compass, Fifth Third Bank, PNC Capital Markets, LLC, Regions Capital Markets, SunTrust Robinson Humphrey, Inc. and Wells Fargo Securities, LLC are joint lead arrangers and joint bookrunners.

Bank of America, NA, BMO Harris Bank, NA, BBVA Compass, Fifth Third Bank, PNC Bank, NA, Regions Bank, SunTrust Bank and Wells Fargo Bank, NA are co-syndication agents. BankUnited, NA, Barclays Bank plc, Citizens Bank, NA, Deutsche Bank Securities Inc. and Royal Bank of Canada are co-documentation agents.

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

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