Web.com plans $225 million offering

Web.com plans $225 million senior notes offering

Associated Press

JACKSONVILLE, Fla. (AP) -- Web.com Group Inc., an online marketing and internet services company, said Thursday that it is offering $225 million in senior convertible notes.

The company is also is granting the underwriters an option to purchase up to $33.75 million in additional notes to cover over-allotments. The notes, which are due in 2018, will pay interest semi-annually.

Web.com said it intends to use the net proceeds from the offering to repay debt.

Wells Fargo Securities LLC and Deutsche Bank Securities Inc. are acting as joint book-running managers for the offering.

Web.com., based in Jacksonville, Fla., provides services to small businesses to help them compete online, such as website design and online marketing campaigns.

Its shares fell $2.16, a nearly 8 percent drop, to $26 in after-hours trading following the announcement. They fell 4 cents to close regular trading at $28.16.

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