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Web.com reveals first- and second-lien loan price talk with launch
By Sara Rosenberg
New York, Sept. 5 – Web.com Group Inc. released price talk on its $1.08 billion seven-year covenant-light first-lien term loan B (B2) and $420 million eight-year covenant-light second-lien term loan (Caa2) with its lender presentation on Wednesday, according to a market source.
Price talk on the first-lien term loan is Libor plus 400 basis points to 425 bps with a 0% Libor floor and an original issue discount of 99 to 99.5, and talk on the second-lien term loan is Libor plus 800 bps to 825 bps with a 0% Libor floor and a discount of 98.5 to 99, the source said.
The first-lien term loan has 101 soft call protection for six months and amortization of 1% per annum, and the second-lien term loan has hard call protection of 102 in year one and 101 in year two.
The company’s $1.6 billion of senior secured credit facilities also include a $100 million five-year revolver (B2).
Morgan Stanley Senior Funding Inc., RBC Capital Markets and Macquarie Capital (USA) Inc. are the leads on the deal.
Commitments are due on Sept. 17, the source added.
Proceeds will be used to help fund the buyout of the company by Siris Capital Group LLC and refinance existing debt.
Other funds for the transaction will come from equity and cash on hand.
Under the agreement, Siris will purchase all of the outstanding common stock of Web.com for $25.00 per share in cash. The transaction is valued at about $2 billion.
Closing is expected in the fourth quarter, subject to approval by Web.com shareholders, regulatory approvals and customary conditions.
Web.com is a Jacksonville, Fla.-based provider of a full range of internet services and online marketing solutions for small and medium sized businesses.
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