IAC Readies Debt for Spinoffs
By Staff -- Home Textiles Today, 7/28/2008 12:00:00 AM
New York —
IAC/Interactive Corp. has set up about $2 billion in debt issues to facilitate its planned breakup into five companies, including a standalone entity to be called HSN Inc.
Of the HSN component, IAC said, "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."
The HSN bond offering, said IAC, is expected to close by August 1.
HSN Inc. will comprise the television and online direct-to-consumer retailer Home Shopping Network along with mail-order catalog specialist Cornerstone Brands. These two divisions of IAC had combined 2007 home textiles retail sales of $243 million, which would place them at No.20 in the HTT Top 50 Retailing Giants.
The other spinoff companies will be Ticketmaster, Interval Leisure Group, Lending Tree and IAC.
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