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IAC revises terms on $1 billion two-tranche offering of exchangeables
By Abigail W. Adams
Portland, Me., May 21 – IAC/InterActive Corp. revised the terms on its $1 billion two-tranche offering of exchangeable notes, which are slated to price after the market close on Tuesday, according to a market source.
Talk on the $500 million tranche of seven-year notes was revised to a coupon of 0.875% to 1% with an initial exchange premium of 32.5%, according to a market source.
Initial talk was for a coupon of 1% to 1.5% with an initial exchange premium of 27.5% to 32.5%.
The notes will be issued by IAC Finance Co. 2, Inc.
Talk on the $500 million tranche of exchangeable notes due 2030 was revised to a coupon of 2% to 2.25% with an initial exchange premium of 27.5%, according to a market source.
Initial talk was for a coupon of 1.75% to 2.25% with an initial exchange premium of 27.5% to 32.5%.
The notes will be issued by IAC Finance Co. 3, Inc.
Both tranches are convertible into IAC common shares.
J.P. Morgan Securities LLC, Goldman Sachs & Co. LLC, BofA Securities LLC, BNP Paribas, Citigroup and Guggenheim Securities are joint bookrunners for the Rule 144A offerings with both tranches carrying a greenshoe of $75 million.
The seven-year notes are non-callable for four years and then subject to a 130% hurdle with a make-whole.
The exchangeable notes due 2030 are non-callable for seven years and then subject to a 130% hurdle with a make-whole.
Both tranches have takeover and dividend protection.
In connection with the pricing of the notes, the company will enter into convertible note hedge and warrant transactions.
Proceeds will be used to cover the cost of the call spread and for general corporate purposes.
IAC is a New York-based media and internet holding company.
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