KKR-Backed Firm Launches the Biggest Loan Refinancing in Years

Software company Internet Brands is selling a $4.7 billion leveraged loan to refinance upcoming 2024 maturities in the biggest refinancing deal to hit the market in at least two years, data compiled by Bloomberg show.

(Bloomberg) — Software company Internet Brands is selling a $4.7 billion leveraged loan to refinance upcoming 2024 maturities in the biggest refinancing deal to hit the market in at least two years, data compiled by Bloomberg show.

The RBC Capital Markets-led sale launched Wednesday, according to people familiar with the matter. Lenders will hold an investor call Thursday at 11 a.m. New York time for the five-year, first-lien term loan, said the people, who asked not to be identified discussing a private transaction.

Issuers are wading back into leveraged finance markets with larger offerings as average loan prices have stabilized in the wake of the recent banking crisis. Internet Brands’ deal is notable as the biggest refinancing transaction in years while most borrowers have been opting for amend-and-extend transactions with existing lenders to avoid locking in higher interest rates for longer tenors.

Banks also launched a sizable buyout-financing loan last week amid the improved market tone. Investors have piled into a $1 billion transaction supporting the acquisition of Qualtrics International Inc. and the pricing will likely tighten, Bloomberg earlier reported.

KKR & Co.-backed Internet Brands’ holding company, MH Sub 1 LLC, is rated B with a negative outlook at S&P Global Ratings. In part, the negative outlook reflects the chance that the 2024 loans will see higher interest rates upon refinancing, according to S&P.

KKR Capital Markets LLC is also a bookrunner on the transaction, said the people.

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