TicketMaster To Carry $750 Million In Debt; HSN and Interval To Have Net Debt As Well
By Joseph Weisenthal - Mon 23 Jun 2008 08:28 PM PST
Back in May, when IAC released the first details of its five-way split, it said it would saddle the spincos with debt and that the proceeds would go back to New IAC (NSDQ: IACI). Other than that, it didn’t go deep into balance sheet specifics. On a call with analysts, IAC CFO Thomas McInerney offered one detail, saying TicketMaster would carry $750 million in debt and $450 million in cash. As for HSN and LendingTree, he said they too would be net borrowers, though the specifics weren’t announced, according to Reuters. More details on the various payments are expected to come later this week, according to WSJ, which notes that the company will take in over $1 billion in total. It still doesn’t sound like the beleagured LendingTree business will be forced to carry an extra debt load, however. Note that Time Warner (NYSE: TWX) has adopted the same principle for its Time Warner Cable (NYSE: TWC) spin, as the new unit will take on about $10 billion of debt to be paid to the parent.
Meanwhile, McInerney says the spin remains on track to take place some time in July or August, as previously indicated.
Posted in: Companies, IACI, Money, Earnings
Tags: ticketmaster,
