Ancestry cuts term loan to $1.6 billion, flexes to Libor plus 400 bps

By Sara Rosenberg

New York, Nov. 24 – Ancestry.com (Arches Buyer Inc.) downsized its seven-year covenant-lite first-lien term loan (B1/B) to $1.6 billion from $1.8 billion and reduced pricing to Libor plus 400 basis points from Libor plus 425 bps, according to a market source.

Also, the original issue discount on the term loan was set at 99, the tight end of the 98.5 to 99 talk, and the 101 soft call protection was extended to one year from six months, the source said.

The term loan still has a 0.5% Libor floor.

Credit Suisse Securities (USA) LLC, BofA Securities Inc., Morgan Stanley Senior Funding Inc., Barclays, J.P. Morgan Securities LLC and Blackstone are the lead arrangers on the deal.

Recommitments were scheduled to be due at 11 a.m. ET on Tuesday, the source added.

Proceeds will be used to help fund the buyout of the company by Blackstone from Silver Lake, GIC, Spectrum Equity, Permira and other equity holders for a total enterprise value of $4.7 billion. Current Ancestry.com investor GIC will continue to retain a significant minority stake in the company.

Other funds for the transaction will come from $700 million of secured notes, upsized from $450 million, and $500 million of unsecured notes, downsized from $550 million.

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

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