Internet Brands launches $300 million incremental first-lien term loan

By Sara Rosenberg

New York, Feb. 23 – Internet Brands Inc. held a lender call at 4 p.m. ET on Thursday to launch a $300 million covenant-light incremental first-lien term loan due July 2021, according to a market source.

Included in the incremental loan is a $100 million delayed-draw tranche.

The incremental loan is talked at Libor plus 375 basis points with a leverage-based step-up to Libor plus 400 bps and a 1% Libor floor, in line existing first-lien term loan pricing, the source said.

Original issue discount talk on the incremental term loan is 99 to 99.5, and there is a ticking fee of the full spread plus the floor from days 31 to 180 and it will fund into escrow thereafter, the source continued.

The loan has 101 soft call protection for six months.

Expected term loan ratings are B1/B.

Credit Suisse Securities (USA) LLC, KKR Capital Markets LLC, RBC Capital Markets LLC, Mizuho Bank Ltd. and Sumitomo Mitsui Bank Corp. are the leads on the deal.

Commitments are due at 5 p.m. ET on March 3, the source added.

Proceeds will be used to fund cash to the balance sheet for future acquisitions.

The borrowers are MH Sub I LLC and Micro Holding Corp.

Internet Brands is an El Segundo, Calif.-based provider of vertically focused online media and software services.

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