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Meredith plans $875 million loans with purchase by Dotdash
By Sara Rosenberg
New York, Oct. 7 – Meredith Corp. (National Media Group) has received a commitment for $875 million of secured credit facilities in connection with its proposed acquisition by IAC/InterActiveCorp’s Dotdash digital publishing unit, according to an 8-K filed with the Securities and Exchange Commission on Thursday.
The facilities consist of a $150 million revolver and $725 million of term loans.
RBC Capital Markets and Barclays provided the debt commitment.
Proceeds will be used to repay existing credit facilities and fund a payment in connection with its spinoff.
Des Moines-based Meredith is spinning off to its existing shareholders its National Media Group operating division, which owns a portfolio of magazines as well as digital and marketing assets, and selling its other operating division, known as the Local Media Group, which owns television stations, to Gray Television Inc.
Following the spinoff, IAC’s Dotdash unit will purchase the spun-off Meredith 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.
To help fund the acquisition, IAC, a New York-based media and internet company, has a commitment for an up to $850 million bridge loan from JPMorgan Chase Bank, another 8-K filed with the SEC disclosed.
Long-term financing to replace the bridge loan is expected to be obtained at Dotdash prior to closing.
Other funds for the transaction will come from IAC’s cash on hand.
The Meredith credit facilities commitment replaces the one that the company obtained upon deciding to spin off but prior to the IAC news.
The terminated credit facilities commitment also provided for a $150 million revolver and $725 million of term loans from RBC and Barclays.
Closing is expected by the end of the year, subject to customary conditions, including regulatory approvals and completion of the spinoff.
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