InfoSpace plans $90 million of senior secured debt for TaxACT buy

By Sara Rosenberg

New York, Jan. 9 - InfoSpace Inc. expects to get $90 million of senior secured debt and use a $3 million draw under a revolving credit facility to help fund its acquisition of TaxACT, according to an 8-K filed with the Securities and Exchange Commission on Monday.

Interest expense on the senior secured debt is estimated to be around 5%.

Other funds for the transaction will come from $200 million in cash.

Leverage will be around 2.5 times LTM EBITDA.

Under the agreement, InfoSpace is buying TaxACT for $287.5 million in cash, with closing targeted for this quarter, subject to satisfaction of customary conditions.

For the 12 months ended Sept. 30, InfoSpace and TaxACT together generated pro forma revenue of $290 million, pro forma adjusted EBITDA of $72.5 million and pro forma non-GAAP net income of $45.6 million or $1.21 per diluted share.

InfoSpace is a Bellevue, Wash.-based developer of metasearch products. TaxACT is a Cedar Rapids, Iowa-based provider of online tax services.

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