Web.com Announces the Expansion and Amendment of Existing Term Loan and Revolving Credit Facility
May 18 2017 - 4:05PM
Web.com Group, Inc. (Nasdaq:WEB), a leading provider of Internet
services and online marketing solutions for small businesses, today
announced it has increased its existing term loan by $50 million
and added $110 million of additional capacity to its current
revolving credit facility. As of closing, these changes to
its existing credit facilities did not increase the Company’s
outstanding debt from the end of the first quarter of 2017.
Web.com used the proceeds from the increased borrowing on the term
loan to repay its current revolver balance.
“We are pleased with the upsizing of both our
term loan and revolver. These changes, along with our strong
free cash flow, give us additional flexibility and options to
address our future debt maturity. The enhancements to
our capital structure also speak to the strength of our business,
and the increased liquidity enables us to continue our balanced
approach to capital deployment,” said David L. Brown, chairman,
chief executive officer, and president of Web.com.
As of May 18, the term loan has a balance of
$430.3 million, and the revolver balance is zero with total
availability of $260 million. The maturity and current
interest rate, LIBOR plus 2.25%, of both facilities remain
unchanged. The Company incurred customary one-time costs
associated with this transaction.
About Web.com Web.com Group,
Inc. (NASDAQ:WEB) is a global provider of a full range of
Internet services to small businesses to help them compete and
succeed online. Web.com meets the needs of small businesses
anywhere along their lifecycle with affordable, subscription-based
solutions including domains, hosting, website design and
management, search engine optimization, online marketing campaigns,
local sales leads, social media, mobile products and eCommerce
solutions. For more information, please visit www.web.com; follow
Web.com on Twitter @webdotcom or on Facebook at
facebook.com/web.com
Note to Editors: Web.com is a registered
trademark of Web.com Group, Inc.
Forward-Looking StatementsThis
press release includes "forward-looking statements" including,
without limitation, statements about the changes to the Company’s
term loan and revolving credit facility, together with free cash
flow, providing flexibility to address upcoming debt maturities and
future capital deployment, and the enhancements to our capital
structure speaking to the strength of our business, are
subject to risks, uncertainties and other factors that could cause
actual results or outcomes to differ materially from those
contemplated by the forward-looking statements. As a result
of the ultimate outcome of such risks and uncertainties, Web.com's
actual results could differ materially from those anticipated in
these forward-looking statements. These statements are based on
Web.com's current beliefs or expectations, and there are a number
of important factors that could cause the actual results or
outcomes to differ materially from those indicated by these
forward-looking statements, including, without limitation, risks
related to the successful offering of the products and services of
Web.com; and other risks that may impact Web.com's business. Other
risk factors are set forth under the caption, "Risk Factors," in
Web.com's quarterly report on Form 10-Q for the quarter ended March
31, 2017 as filed with the Securities and Exchange Commission,
which is available on a website maintained by the Securities and
Exchange Commission at www.sec.gov. Web.com expressly disclaims any
obligation or undertaking to release publicly any updates or
revisions to any forward-looking statements contained herein as a
result of new information, future events or otherwise.
Contacts
Investors:
Ira Berger
904-680-6909
Ira.Berger@web.com
Media:
Brian Wright
904-371-6856
Brian.Wright@web.com
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