Internet Brands to launch $4.8B 1st-lien term loan with lender call Nov. 15

Internet Brands Inc. is planning to issue a $4.805 billion first-lien term loan due August 2028 to refinance its existing first-lien debt and to fund a shareholder distribution, according to sources. A lender call is scheduled for 1 p.m. ET on Nov. 15, and commitments will be due by 5 p.m. ET on Nov. 18.

Price talk is not yet announced but note that the covenant-lite term loan will be issued with six months of 101 soft call protection. MH Sub I LLC and WebMD Health Corp. are the borrowers.

The deal comes via an arranger group led by Credit Suisse, KKR Capital Markets and RBC Capital Markets.

The issuer's original first-lien term loan due September 2024 was issued in 2017 to finance the acquisition of WebMD Health. Pricing came at L+375, with a 0% Libor floor, and with a 25 basis point margin step-down at 4.25x net first-lien leverage. The company then placed in June 2020 a $500 million non-fungible incremental first-lien term loan due September 2024 (L+375, 1% floor) to repay its revolver and subsequently tacked on another $400 million in November 2020 and $450 million in February.

In addition to its first-lien debt, the company has a $575 million second-lien term loan due 2029 (L+625, 0% floor) that was issued in February to refinance the existing second-lien tranche. RBC Capital Markets is administrative agent on the second-lien tranche.

KKR-backed Internet Brands operates branded websites and provides vertical software products and services, primarily in the automotive, health, legal and home/travel markets.