Moody’s: Match facilities Ba1, notes Ba3

Moody’s Investors Service said it assigned Ba1 ratings to Match Group Inc.’s upsized $750 million revolving credit facility and $425 million term loan B and a Ba3 rating to its proposed $500 million of senior unsecured notes. The agency also assigned the company a first-time Ba2 corporate family rating and Ba2-PD probability of default rating. Concurrently, Moody’s assigned an SGL-1 speculative grade liquidity rating. Match’s existing senior unsecured notes remain unchanged at Ba3. The outlook is stable.

Match’s parent, IAC/InterActiveCorp, announced on Dec. 19, its board of directors had approved the separation of IAC and Match into two independent public companies. Under the terms of the spin-off transaction, IAC’s shareholders will receive a direct ownership interest in Match proportionate to IAC’s 81% equity stake in Match. In connection with the transaction, Match will retain IAC’s $1.7 billion of unrated exchangeable notes and associated hedging instruments and pay $3 per share cash to Match’s shareholders (including IAC), totaling about $840 million.

Proceeds from the new notes offering together with cash balances will be used to pay the one-time distribution. Match also launched an amendment to its bank credit agreement to extend the tenor of its credit facilities and upsize the revolver to $750 million from $500 million. The spinoff is expected to close by the end of June 2020.

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