Ancestry.com ups $670 million term loan talk to Libor plus 550-575 bps

By Sara Rosenberg

New York, Dec. 13 - Ancestry.com raised price talk on its $670 million seven-year covenant-light term loan to Libor plus 550 basis points to 575 bps from talk of Libor plus 475 bps to 500 bps, according to a market source.

Also, the original issue discount is now guided at 98 to 99, instead of just at 99, and 101 soft call protection for one year was added to the loan, the source said.

The 1.25% Libor floor was left unchanged.

The $720 million senior secured credit facility (B1/B+) also includes a $50 million five-year revolver.

Final commitments are still due by 5 p.m. ET on Friday, the source added.

Barclays, Morgan Stanley Senior Funding Inc., Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc. and RBC Capital Markets LLC are the lead banks on the deal.

Proceeds will be used to help fund Permira Funds' buyout of the company for $32.00 per share in cash in a transaction valued at $1.6 billion.

The company is also selling $300 million of senior unsecured notes, which are backed by a commitment for a $300 million one-year senior unsecured bridge loan.

Pricing on the bridge loan is Libor plus 825 bps with a 1.25% Libor floor. The spread will increase by 50 bps after three months and every three months thereafter up to an undisclosed cap.

Other funds for the transaction will come from up to $503 million of equity from Permira and from $100 million of equity that Spectrum Equity, which owns about 30% of the company's shares, will exchange for shares in the acquired company.

Also, Timothy Sullivan, president and chief executive officer of the company, and Howard Hochhauser, chief financial officer and chief operating officer, have agreed to roll over a substantial majority of their respective shares of Ancestry.com's common stock.

Closing is expected in early 2013, subject to stockholder approval and other customary conditions.

Senior secured leverage is 3.9 times and total leverage is 5.6 times.

Ancestry.com is a Provo, Utah-based online family history resource.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.