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IAC Successfully Places $2 Billion In Debt; Will Have $1.3 Billion To Invest Internally And In Deals

This was expected, but still you can’t take anything for granted in this environment: IAC (NSDQ: IACI) said this afternoon that it has successfully raised about $2 billion in debt, associated with its spinoff plan. Specifically, the company raised $840 million through bonds and another $1.15 billion through senior notes. IAC CFO Tom McInerney touted the raise as evidence of health at Interval, HSN and TicketMaster (Lending Tree, the weakest of the units is not incurring any debt, and will in fact be given cash). The announcement has the exact breakdown of debt between each unit. After the dust settles, IAC will have about $1.3 billion to invest internally and in new acquisitions, according to McInerny. Technically, the money will be received upon completing some paperwork and other technicalities over the next several days.

Meanwhile, in a new note put out today, Doug Anmuth offered some reactions following meetings with IAC management.

— “Top 3 pts: 1) We expect Ask.com to have strong bottom line in near term on GOOG deal & shift from network to prop.; 2) Mgmt clearly stated it would deploy capital in very disciplined way going forward, & would focus on small, strategic deals that fit into IAC

4 Responses to “IAC Successfully Places $2 Billion In Debt; Will Have $1.3 Billion To Invest Internally And In Deals”

  1. These guys seem content to continue to throw big money online with no significant assets and no real strategy. These guys are a startups wet dream. They are out shopping with no idea what they are doing. Its great!

  2. Rafat Ali

    Ask to be repositioned in Oct., returning to “ask & answer” roots: Does this mean the Jeeves is coming back? How about buying Mahalo?

  3. jenkins

    this is a JOKE! These guys don't even own one of the great ad companies/networks/systems. They outsourced monetization to Google and Looksmart. Give me a break!