S&P puts Match Group on watch

S&P said it placed all the ratings for Match Group Inc. on CreditWatch with negative implications following the announcement it will separate from InterActive Corp.

As part of the proposed transaction, Match will assume roughly $1.7 billion of exchangeable notes issued by IAC subsidiaries. Furthermore, Match will issue about $840 million in cash consideration to its shareholders, funded with $500 million in new debt and cash on the balance sheet.

“This will result in pro forma leverage of 4.4x as of transaction close (from about 1.7x currently), which exceeds our 3x downgrade trigger for the BB rating. The transaction remains subject to shareholder approval and is expected to close in second-quarter 2020,” said S&P in a press release.

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