IAC (IACI) Announces Several Agreements for Spin-Off Plans

July 18, 2008 4:05 PM EDT

IAC (Nasdaq: IACI) has entered into a series of agreements that collectively provide for the placing of $840 million in bonds and $1.15 billion in senior credit facilities for Interval Leisure Group, Inc., Ticketmaster and HSN, Inc.; a significant milestone in IAC's spin-off plans, expected to close in Q3 2008. The HSN and Ticketmaster financings, which in the case of the credit facilities remain subject to finalizing documentation, are expected to close within the next two weeks.

Details on the financings include:

-- Interval Leisure Group -- Interval has entered into an agreement which will result in the placement of $300 million of senior unsecured notes due 2016 with a 9.5% coupon rate and has commitments for a $150 million 5-year Term Loan A and a $50 million 5-year revolver. ILG is expected to have $450 million in funded debt and approximately $120 million in cash at the time of the spin-off.

-- Ticketmaster -- Ticketmaster has entered into an agreement for the sale of $300 million of senior unsecured notes due 2016 with a 10.75% coupon rate and has commitments for a $100 million 5-year Term Loan A, a $350 million Term Loan B, and a $200 million 5-year revolver. Ticketmaster is expected to have $754 million in funded debt and approximately $500 million in cash at the time of the spin-off.

-- HSN -- HSN has entered into an agreement for the sale of $240 million of senior unsecured notes due 2016 with an 11.25% coupon rate and has commitments for a $150 million 5-year Term Loan A and a $150 million 5-year revolver. HSN is expected to have $390 million in funded debt and $50 million in cash at the time of the spin-off.[SM]

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