IAC fails to get consents from holders of New York liberty bonds

By Angela McDaniels

Tacoma, Wash., April 14 – IAC/InterActiveCorp. said that requisite consent was not received for the New York City Industrial Development Agency liberty bond program related to the IAC/InterActiveCorp. project and that there will be no further extensions at this point.

On March 17, the company announced that it was soliciting consents from holders of the New York liberty bonds that were used to finance the company’s corporate headquarters in Manhattan.

The company was seeking consents from holders of at least two-thirds of the bonds in order to release its development rights under the governing documents for the securities because it has sold an adjacent property to an affiliate of the Related Cos. for the development of a new mixed-use building.

Because it did not obtain the needed consents, IAC may consider redeeming the bonds on Sept. 1, which is the first optional redemption date.

The consent solicitation expired at 5 p.m. ET on April 3.

The company offered to contribute $0.09 for each $100 of bonds for which consents were delivered to a 501(c)3 charity. Otherwise, holders could opt to have the consent fee delivered in cash.

The bond program was approved by the U.S. Congress following Sept. 11, 2001 to facilitate the reconstruction and revitalization of New York City.

Questions may be directed to Irene Cooper of Bondholder Communications (888 385 BOND or ICooper@BondCom.com).

The issuer is a New York-based media and internet company.

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