IAC Inc. Announces Pricing of Offering of Senior Secured Notes of Dotdash Meredith

Rhea-AI Summary

IAC's subsidiary Dotdash Meredith (DDM) has announced a $400 million private offering of senior secured notes due 2032, with a 7.625% annual interest rate. The notes will be issued at 100% face value and guaranteed by certain DDM subsidiaries. The company plans to use the proceeds, along with a new $700 million term loan B facility and cash reserves, to refinance its existing $1.18 billion term loan B-1 facility. Both the offering and new term loan transactions are expected to close around June 16, 2025. The offering is exclusively available to qualified institutional buyers under Rule 144A and non-U.S. persons under Regulation S of the Securities Act.

Positive

• Successful debt refinancing of $1.18 billion through diversified funding sources
• Senior secured notes offering demonstrates market confidence in DDM's creditworthiness
• Strategic debt restructuring provides longer maturity until 2032

Negative

• High interest rate of 7.625% on the new notes indicates significant borrowing costs
• Substantial debt load remains with $400M notes plus $700M term loan
• Additional cash on hand required to complete the refinancing

Insights

Corporate Bond Expert

IAC's Dotdash Meredith is restructuring $1.18B of debt with new notes and term loan, extending maturity to 2032 at 7.625% interest.

Dotdash Meredith (DDM), IAC's publishing subsidiary, is executing a significant debt refinancing transaction. DDM has priced $400 million of senior secured notes at 7.625% interest with maturity extending to 2032. The company will combine these proceeds with a new $700 million term loan B facility and existing cash to completely repay its outstanding $1.18 billion term loan B-1 facility.

This refinancing represents a strategic liability management move that accomplishes several objectives. First, by extending the debt maturity to 2032, DDM significantly improves its long-term debt profile and reduces near-term refinancing pressures. Second, while the specific terms of the existing loan aren't detailed, the structure suggests DDM is optimizing its capital structure by diversifying funding sources between notes and term loans.

The 7.625% interest rate is particularly noteworthy in the current rate environment. It indicates investors are requiring a meaningful yield premium, reflecting both broader market conditions and their assessment of DDM's credit profile. The fact that the notes are being issued at 100% of face value (not at a discount) suggests reasonable demand despite the yield.

The secured nature of these notes, backed by guarantees from DDM subsidiaries, provides additional protection for noteholders while likely helping DDM secure better terms than would be possible with unsecured debt. This private placement to qualified institutional buyers under Rule 144A indicates a sophisticated investor base rather than retail distribution.

The transaction is expected to close around June 16, 2025, pending customary conditions. This refinancing doesn't change DDM's overall debt burden substantially but improves its debt structure and provides more financial flexibility for IAC's publishing operations.

NEW YORK, June 5, 2025 /PRNewswire/ -- IAC Inc. (NASDAQ: IAC) ("IAC") announced today that its wholly owned subsidiary, Dotdash Meredith Inc. ("DDM"), has agreed to sell $400 million aggregate principal amount of 7.625% senior secured notes due 2032 (the "Notes") in a private offering (the "Offering").  The Notes will bear interest at an interest rate of 7.625% per annum and will be issued at 100.00% of their face value.  DDM's obligations under the Notes will be guaranteed on a senior secured basis by certain of DDM's subsidiaries.

DDM intends to use the proceeds of the offering, together with the borrowings under DDM's new $700.0 million term loan B facility and cash on hand, to repay all of the indebtedness outstanding under DDM's existing $1.18 billion term loan B-1 facility and to pay related fees and expenses.  The closings of each of the Offering and new term loan B facility are expected to occur on or about June 16, 2025, each subject to the satisfaction of customary closing conditions.

The Offering is being made only to persons reasonably believed to be qualified institutional buyers in accordance with Rule 144A under the Securities Act of 1933, as amended (the "Securities Act"), and to non-U.S. persons outside the United States in compliance with Regulation S under the Securities Act.  The Notes will not be registered under the Securities Act or any state securities laws and may not be offered or sold in the United States without registration except pursuant to an exemption from, or in a transaction not subject to, the registration requirements under the Securities Act and any state securities laws. 

This press release does not constitute an offer to sell or the solicitation of an offer to buy the Notes or any other securities, nor shall it constitute an offer, solicitation or sale in any jurisdiction in which such offer, solicitation or sale would be unlawful. Any offers of the Notes will be made only by means of a private offering memorandum.

About IAC

 IAC (NASDAQ: IAC) builds companies.  We are guided by curiosity, a questioning of the status quo, and a desire to invent or acquire new products and brands.  From the single seed that started as IAC nearly three decades ago have emerged 10 independent, public-traded companies and generations of exceptional leaders.  We will always evolve, but our basic principles of financially-disciplined opportunism will never change.  IAC is today comprised of category-leading businesses Dotdash Meredith (DDM) and Care.com among others and holds strategic equity positions in MGM Resorts International and Turo Inc.  IAC is headquartered in New York City.

About DDM

DDM is the largest digital and print publisher in America. More than 150 million people trust DDM each month to help them make decisions, take action, and find inspiration. DDM's over 40 iconic brands include PEOPLE, Better Homes & Gardens, Verywell, Food & Wine, The Spruce, Allrecipes, Byrdie, REAL SIMPLE, Investopedia, and Southern Living. DDM is based in New York City and is an operating business of IAC (NASDAQ: IAC).

Forward-Looking Statements

This press release may contain "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. The use of words such as "anticipates," "estimates," "expects," "plans" and "believes," among others, generally identify forward-looking statements. These forward-looking statements include, among others, statements relating to: the completion of the Offering, the future financial performance of DDM, DDM's business prospects and strategy, anticipated trends and prospects in the industries in which DDM's businesses operate and other similar matters.

Actual results could differ materially from those contained in these forward-looking statements for a variety of reasons, including the risk that the Offering may not be completed on its proposed terms or at all, and the other risks and uncertainties described in IAC's filings with the Securities and Exchange Commission (the "SEC"), including the most recent Annual Report on Form 10-K filed with the SEC on February 28, 2025, and subsequent reports that IAC files with the SEC. Other unknown or unpredictable factors that could also adversely affect DDM's business, financial condition and results of operations may arise from time to time. It is not possible for our management to predict all risks, nor can we assess the impact of all factors on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those expressed in any forward-looking statements we may make. Except as required by law, we undertake no obligation to update any forward-looking statements to reflect events or circumstances after the date of such statements. You should, therefore, not rely on these forward-looking statements as representing our views as of any date subsequent to the date of this press release.

IAC Investor Relations
Mark Schneider
(212) 314-7400

IAC Corporate Communications
Valerie Combs
(212) 314-7251

IAC
555 West 18th Street
New York, NY 10011
(212) 314-7300

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SOURCE IAC

FAQ

What is the size and interest rate of IAC's Dotdash Meredith notes offering?

Dotdash Meredith is offering $400 million in senior secured notes with a 7.625% annual interest rate, due in 2032.

How will IAC use the proceeds from the notes offering?

The proceeds will be combined with a new $700M term loan B facility and cash on hand to repay DDM's existing $1.18B term loan B-1 facility and related expenses.

When is the expected closing date for IAC's notes offering?

The notes offering and new term loan B facility are expected to close on or about June 16, 2025.

Who can participate in IAC's Dotdash Meredith notes offering?

The offering is limited to qualified institutional buyers under Rule 144A and non-U.S. persons under Regulation S of the Securities Act.

What is the total refinancing package for IAC's Dotdash Meredith?

The total refinancing package includes $400M in senior secured notes, a $700M term loan B facility, and additional cash on hand to repay the $1.18B existing loan.