#USA #New York #Senior Secured Notes #Dotdash Meredith #IAC Inc.

IAC Inc.'s Strategic Move: $400 Million Senior Secured Notes Offering

In a significant announcement for investors and stakeholders, IAC Inc. (NASDAQ: IAC) revealed its plans to offer $400 million in senior secured notes through its subsidiary, Dotdash Meredith Inc. (DDM). This offering, which carries an interest rate of 7.625% and is set to mature in 2032, marks a strategic effort by IAC to manage its financial obligations efficiently.

The decision to pursue this offering comes as part of DDM’s broader strategy to refinance its existing debt portfolio. The proceeds from the senior notes are planned to be utilized alongside a new $700 million term loan B facility and available cash to pay down the entirety of DDM's existing $1.18 billion term loan B-1 facility.

Details of the Offering

The senior secured notes will be issued at 100% of their face value and are guaranteed by certain subsidiaries of DDM on a senior secured basis. The management anticipates that the offering will close on or about June 16, 2025, pending customary closing conditions being satisfied.

This offering will primarily be available to qualified institutional buyers under Rule 144A of the Securities Act of 1933 and to non-U.S. persons in accordance with the regulations stipulated under the Act. It is essential to note that these notes will not be registered under the Securities Act or any state securities laws, limiting their potential trading within the U.S. unless under an exemption or in a compliant transaction.

About IAC and Dotdash Meredith

IAC is recognized as a pioneer in building companies driven by innovation and a keen understanding of market needs. The firm has evolved over nearly three decades from a singular entity into a conglomerate with several independent public companies. Its ventures include prominent brands in various sectors, particularly under DDM, which stands as the leading digital and print publisher in the United States.

Dotdash Meredith reaches over 150 million people monthly, providing trusted content across various categories with well-known brands like PEOPLE, Better Homes & Gardens, and Investopedia. This robust audience allows Dotdash Meredith to maintain a significant market share and influence within the publishing sphere.

Financial Outlook and Market Strategy

The future of DDM appears promising as the notes offering aligns with their goal of financial restructuring to bolster growth and stability. By addressing its debt through this proactive measure, IAC positions DDM to potentially enhance its operational capabilities and invest in brand innovation moving forward.

Forward-looking statements provided by IAC hint at cautious optimism regarding the offering's completion and the subsequent financial health of DDM. While management expects successful execution, unforeseen circumstances may impact anticipated results, a common consideration in financial undertakings of this scale.

In conclusion, the launch of this offering by IAC through Dotdash Meredith is a crucial step toward not only streamlining its financial obligations but also laying the groundwork for future growth and enhanced market competitiveness. As the financial landscape continues to evolve rapidly, companies like IAC and DDM must remain adaptable and resilient, paving the way for sustainable success.