Dotdash Meredith launches $1 billion term B at SOFR plus 350-375 bps

By Sara Rosenberg

New York, Nov. 15 – Dotdash Meredith Inc. was scheduled to hold a lender call at 3 p.m. ET on Monday to launch a $1 billion seven-year term loan B (B1/BB-) that is talked at SOFR+CSA plus 350 basis points to 375 bps with a 25 bps step-down at 0.5x inside closing first-lien net leverage, a 0.5% floor and an original issue discount of 99.5, according to a market source.

CSA is 10 bps one-month rate, 15 bps three-month rate and 25 bps six-month rate.

The term loan has 101 soft call protection for six months, the source said.

JPMorgan Chase Bank, BofA Securities Inc., BNP Paribas Securities Corp. and Truist are the joint lead arrangers on the deal.

Commitments are due at 5 p.m. ET on Nov. 22, the source added.

Proceeds will be used to fund the acquisition of Meredith Corp.’s National Media Group operating division, which owns a portfolio of magazines as well as digital and marketing assets, by IAC/InterActiveCorp’s Dotdash digital publishing unit.

Dotdash will purchase the National Media business for $42.18 per share in cash, subject to adjustment in certain scenarios described in the acquisition agreement. The transaction has a total enterprise value of about $2.7 billion.

Closing is expected by the end of the year, subject to customary conditions.

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