By Stephanie N. Rotondo
Phoenix, Aug. 9 - Web.com Group Inc. sold $225 million of 1% five-year senior convertible notes at 98.5 with an initial conversion premium of 24.3% on Friday, according to a press release.
There is a $33.75 million over-allotment option.
Wells Fargo Securities LLC and Deutsche Bank Securities Inc. are the joint bookrunning managers.
Interest will be payable semiannually.
Prior to May 15, 2018, the notes will have contingent conversion with a 130% threshold. Settlement will be in cash, stock or a combination, at the company's option.
The initial conversion rate is 28.5714 common shares per each $1,000 of notes, equaling a conversion price of $35.00 per share.
Proceeds will be used to repay debt.
Web.com is a Jacksonville, Fla.-based provider of internet services to small businesses.
Issuer: | Web.com Group Inc.
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Securities: | Senior convertible notes
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Amount: | $225 million
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Greenshoe: | $33.75 million
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Maturity: | Aug. 15, 2018
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Bookrunners: | Wells Fargo Securities LLC, Deutsche Bank Securities Inc.
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Coupon: | 1%
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Price: | 98.5
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Conversion premium: | 24.3%
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Conversion price: | $35.00 per share
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Conversion ratio: | 28.5714 common shares per $1,000 of notes
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Contingent conversion: | 130%
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Net share settlement: | Yes
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Call: | From Aug. 20, 2016 at par subject to 130% hurdle
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Pricing date: | Aug. 8
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Settlement date: | Aug. 14
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Stock symbol: | Nasdaq: WWWW
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Stock price: | $28.16 as of Aug. 8 close
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Market capitalization: | $1.31 billion
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