IAC Readies Debt for Spinoffs

IAC/Interactive Corp. has set up about $2 billion in debt issues to facilitate its planned breakup into five companies, including a standalone entity to be called HSN Inc.

Of the HSN component, IAC said, "HSN has entered into an agreement for the sale of $240 million of senior unsecured notes due 2016 with an 11.25% coupon rate and has commitments for a $150 million 5-year Term Loan A and a $150 million 5-year revolver. HSN is expected to have $390 million in funded debt and $50 million in cash at the time of the spin-off."

The HSN bond offering, said IAC, is expected to close by August 1.

HSN Inc. will comprise the television and online direct-to-consumer retailer Home Shopping Network along with mail-order catalog specialist Cornerstone Brands. These two divisions of IAC had combined 2007 home textiles retail sales of $243 million, which would place them at No.20 in the HTT Top 50 Retailing Giants.

The other spinoff companies will be Ticketmaster, Interval Leisure Group, Lending Tree and IAC.

Home & Textiles Today Staff | News & Commentary

 Home Textiles Today is the market-leading brand covering the home and textiles markets, offering a comprehensive package of print and online products. Home & Textiles Today provides industry news, product trends and introductions, exclusive industry research, consumer data, store operations solutions, trade show news and much more.

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See the September 2017 issue of Home & Textiles Today. In this issue, we look at the Attack of the Killer Third Tier: Monster off-pricers are climbing to the top of the food chain, plus New Products: 40 pages of new products debuting at the New York Home Fashions Market; Home Stores: TJX unveils first U.S. HomeSense store; Clicks to Bricks: Boll & Branch moves from digital to physical retailing; and much more... See details!