New York, May 26, 2015 -- Moody's Investor Service said Internet Brands, Inc. ("Internet Brands") announced its proposed $100 million incremental first lien term loan. We expect net proceeds to be used to fund additional tuck-in acquisitions over the next 12 months, and there is no immediate impact on the company's ratings. Although leverage will increase upon closing of the transaction, we anticipate organic EBITDA growth combined with cash flow from planned acquisitions funded by the incremental term loan, plus scheduled debt amortization and mandatory 50% excess cash flow sweep (effective in fiscal 2016) will reduce total debt-to-EBITDA to less than 6.5x (including Moody's standard adjustments, or 5.5x net debt-to-EBITDA leverage) by year end 2015, absent another leveraging event. Although not expected, to the extent the company were to fund distributions over the next 12 months, there would be downward pressure on debt ratings given elevated leverage from the proposed debt issuance.

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