This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

Web.com Re-Prices First Lien Debt And Increases Facility To Retire Second Lien Term Loan

JACKSONVILLE, Fla., March 4, 2013 (GLOBE NEWSWIRE) -- Web.com Group, Inc. (Nasdaq:WWWW) (the "Company"), a leading provider of internet services and online marketing solutions for small businesses, today announced it has increased its first lien credit facility at an improved interest rate, and used the proceeds from the increase to retire its more expensive second lien term loan.

Subject to fulfillment of customary closing conditions, the Company expects to enter into a revised first lien credit facility, which will include a term loan of $660 million at an interest rate of LIBOR plus 3.50%, with a LIBOR floor of 1.00%, as well as a revolving credit facility of $70 million at an interest rate of LIBOR plus 3.25% with no LIBOR floor.

The Company expects to use the proceeds from the increased borrowings under the first lien credit facility to repay in full its second lien term loan, which had a balance of $32 million outstanding on December 31, 2012. The revised first lien credit facility is expected to close later this week. Upon closing, the Company's aggregate debt balance will be approximately $711.0 million.

Web.com expects annualized cash interest savings attributable to this transaction to be approximately $6-7 million.  The Company currently plans to reinvest a majority of the interest savings in sales and marketing activities, which is consistent with management's stated objective of continuing to accelerate revenue growth, while also delivering strong profitability margins.

"The successful re-pricing of our first lien credit facility and the full repayment of our more expensive second lien term loan further improves our capital structure. It also provides us with the flexibility to further increase investments in growth initiatives, as appropriate, without negatively impacting our bottom line results," noted David Brown, chairman and chief executive officer of Web.com. "Since closing the Network Solutions acquisition less than 18 months ago, we have reduced the debt balance incurred in connection with that acquisition by $70 million and decreased our effective interest rate from 7.6% to 4.4%, which translates to more than $18 million in annualized cash interest savings."

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG

Markets

DOW 17,712.66 +34.43 0.19%
S&P 500 2,061.02 +4.87 0.24%
NASDAQ 4,891.2190 +27.8570 0.57%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs