Ancestry term loans trade up on buyout; Concord, KKR Real Estate changes surface

By Sara Rosenberg

New York, Aug. 5 – In trading on Wednesday, Ancestry.com’s extended and non-extended term loans moved higher with news that the company is being sold to Blackstone.

Meanwhile, over in the primary market, Concord (Alchemy Copyrights LLC) increased the size of its term loan B, lowered the spread and tightened the original issue discount.

In addition, KKR Real Estate Finance Trust Inc. (KREF Holdings X LLC) changed the issue price on its term loan B, and Ascensus (Aqgen Ascensus Inc.) and Tutor Perini emerged with new deal plans.

Ancestry strengthens

Ancestry’s term loans gained some ground in the secondary market after it was announced that Blackstone is purchasing the company for $4.7 billion, according to a trader.

The extended term loan was quoted at 99¾ bid, par ¼ offered, up from 96½ bid, 97½ offered, and the non-extended term loan was quoted at 99¾ bid, par ¼ offered, up from 98½ bid, 99½ offered, the trader said.

Ancestry is being bought from Silver Lake, GIC, Spectrum Equity, Permira and other equity holders. GIC will continue to retain a significant minority stake in the company.

To help fund the buyout, Ancestry has received a commitment for new debt financing from Bank of America and Credit Suisse.

Ancestry is a Lehi, Utah-based provider of digital family history services and consumer genomics.

Concord revised

Concord raised its term loan B to $600 million from $400 million, trimmed pricing to Libor plus 325 basis points from talk in the range of Libor plus 350 bps to 375 bps, and adjusted the original issue discount to 99.25 from 98.5, according to a market source.

The term loan still has a 0.75% Libor floor and 101 soft call protection for six months.

The company’s now $1.05 billion of senior secured credit facilities (B+) also include a $450 million revolver.

Recommitments were due at noon ET on Wednesday, the source added.

J.P. Morgan Securities LLC is leading the deal that will be used to refinance existing bank debt.

Concord is a Nashville-based music content provider.

KKR Real Estate tweaked

KKR Real Estate Finance Trust moved the original issue discount on its $300 million seven-year senior secured term loan B (Ba2/BB-) to 97.5 from talk in the range of 96 to 97, a market source said.

As before, the term loan is priced at Libor plus 475 bps with a 1% Libor floor and has 101 soft call protection for one year.

Recommitments were due at 11 a.m. ET on Wednesday, the source added.

J.P. Morgan Securities LLC and KKR Capital Markets are leading the deal that will be used to refinance existing debt, to fund acquisitions and for general corporate purposes.

KKR Real Estate is a New York-based real estate finance company.

Ascensus on deck

Ascensus set a lender call for 1 p.m. ET on Thursday to launch a $1.052 billion covenant-lite first-lien term loan (B2/B-) due December 2026, according to a market source.

The term loan has 101 soft call protection for six months, the source said.

Commitments are due at noon ET on Aug. 13.

Credit Suisse Securities (USA) LLC is the left lead on the deal that will be used to refinance existing first-lien term loans.

Ascensus is a Dresher, Pa.-based tech-enabled solutions provider focused on recordkeeping and administration in the U.S. tax advantages savings market.

Tutor Perini readies loan

Tutor Perini scheduled a lender call for 11 a.m. ET on Thursday to launch a $375 million first-lien term loan B (Ba3/BB-/BB+), a market source remarked.

Goldman Sachs Bank USA and BMO Capital Markets are leading the deal that will be used to repay revolver borrowings, to repurchase or retire outstanding convertible notes due 2021, to pay transaction-related fees and for other general corporate purposes.

Tutor Perini is a Los Angeles-based provider of diversified general contracting, design-build and self-perform construction services for public and private clients.

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