Ancestry.com sets $735 million term B spread at Libor plus 400 bps

By Sara Rosenberg

New York, Aug. 17 – Ancestry.com firmed pricing on its $735 million seven-year covenant-light term loan B at Libor plus 400 basis points, the wide end of the Libor plus 375 bps to 400 bps talk, according to a market source.

Also, the incremental freebie in the loan agreement was reduced to $100 million from $150 million and the unlimited incremental allowance was revised to up to 3 times leverage from up to 4 times leverage, the source said.

As before, the term loan has a 1% Libor floor, an original issue discount of 99 and 101 soft call protection for six months.

There is no MFN sunset provision in the loan, the source added.

The company’s $835 million senior secured credit facility (Ba3/B) also includes a $100 million five-year revolver.

Morgan Stanley Senior Funding Inc., Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., Goldman Sachs Bank USA and RBC Capital Markets are the joint lead arrangers and bookrunners on the deal.

Proceeds will be used to refinance existing term loan B-1 and B-2 borrowings, to fund a dividend distribution and for general corporate purposes.

Closing is expected this month.

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

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