Internet Brands finalizes extended term loan size at $4.23 billion

By Sara Rosenberg

New York, April 25 – Internet Brands (MH SUB I LLC) set the size of its amended and extended five-year term loan (B1/B) at $4.228 billion, versus $4.728 billion, and is leaving a $500 million stub term loan due September 2024 in place, according to a market source.

Pricing on the extended term loan remained at SOFR plus 425 basis points with a 0.5% floor and an original issue discount of 97.5.

The extended term loan still has 101 soft call protection for six months.

Earlier in syndication, the transaction was revised to an amendment and extension from a new $4.728 billion five-year term loan that would refinance the existing term loan due 2024, allowing for the possibility of a non-extended stub tranche, and changes were made to documentation, including to restricted payments and setting MFN at 50 bps for 24 months with no carve-outs except for permitted merger and acquisitions.

Also, at launch, the term loan was sized at $4.741 billion, but the adjusted $4.728 billion total size of extended and non-extended term loan takes into account a March amortization payment.

RBC Capital Markets and KKR Capital Markets are the leads on the deal.

Internet Brands is an El Segundo, Calif.-based provider of software as a service and traffic driven marketplace/media offerings across health, legal, dental and media verticals.

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