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Prospect backs acquisition of social networking site

 The secured credit line is in support of the $30 million acquisition of high school alumni social network, Classmates Inc. by private equity-backed online data resource Intelius.    

 New York-based Prospect Capital has provided a $13.5 million first lien floating rate loan to public information provider Intelius for its acquisition of Seattle-based social network Classmates Inc, a source close to the deal told Private Debt Investor.


Prospect declined to comment on the loan pricing but the source said the pricing was in the range of 8 to 10 percent inclusive of a Libor floor.

California-headquartered United Online, an internet access, social media and advertising services provider, announced the sale of Classmates, which was its wholly owned subsidiary, for $30 million in an all-cash transaction yesterday (12 August).

Classmates, started in 1995, is an online high school alumni social network connecting over 70 million members, according to the a statement from Prospect. Classmates Inc will operate as a separate division of Intelius.

Last month, Prospect provided a $31 million unitranche loan to New York-based H.I.G Capital for its purchase of Intelius.

“The strategic investment in Classmates represents a one-of-a-kind social network with an excellent fit with Intelius and with proprietary content available to its members,” Jason Wilson, managing director at Prospect Capital Management said in the statement. “This add-on financing, which closed only one month after the initial acquisition of Intelius, demonstrates Prospect’s execution agility and track record of supporting the growth plans of platform businesses backed by high-quality sponsors.”

Washington-based Intelius Holdings, provides online public information through people searches and other data such as criminal records, property records, contact information and possible connections with other people or organizations for its customers. Intelius collects data from over 20 billion public records from publicly available sources and assigns them to more than 250 million unique profiles in the US.

Prospect has previously worked with H.I.G Capital on about 16 deals, according to the source.