Internet Brands lifts add-on term loan B-3 amount to $600 million

By Sara Rosenberg

New York, Jan. 10 – Internet Brands (MH SUB I LLC) upsized its fungible add-on term loan B-3 due May 2028 (B1/B) to $600 million from $300 million plus, according to a market source.

Pricing on the add-on term loan B-3 is SOFR plus 425 basis points with a 0.5% floor, in line with existing term loan B-3 pricing, and the new debt has an original issue discount of 98.

The add-on term loan has 101 soft call protection for six months.

RBC Capital Markets and KKR Capital Markets are the arrangers on the deal. RBC is the administrative agent.

Commitments continued to be due at 5 p.m. ET on Wednesday, the source added.

Proceeds will be used to fully refinance an existing term loan B-1 and term loan B-2, with a combined total amount of $498 million, and the remaining roughly $100 million will be put on the balance sheet for future mergers and acquisitions.

Pro forma for the transaction, the term loan B-3 will be sized at about $4.7 billion.

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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