Ancestry reduces term loan B amount to $950 million, shrinks dividend

By Sara Rosenberg

New York, Aug. 19 – Ancestry.com Operations Inc. downsized its seven-year covenant-lite term loan B to $950 million from $1.15 billion, according to a market source.

Pricing on the term loan B is Libor plus 425 basis points with a 0% Libor floor and an original issue discount of 99.

The term loan B has 101 soft call protection for six months.

Previously in syndication, pricing on the term loan B was increased from Libor plus 400 bps and the discount was set at the wide end of the 99 to 99.5 talk.

Also, at the time of the pricing flex, it was announced that pricing on the company’s existing term loan due 2023 will be lifted to Libor plus 375 bps from Libor plus 325 bps.

Morgan Stanley Senior Funding Inc., J.P. Morgan Securities LLC, Goldman Sachs Bank USA, Deutsche Bank Securities Inc., KKR Capital Markets, Barclays, BofA Securities, Inc., RBC Capital Markets and UBS Investment Bank are the joint lead arrangers and bookrunners on the deal. JPMorgan is the administrative agent.

Commitments and consents are due at noon ET on Wednesday, the source added.

With this transaction, the company is seeking an amendment to and partial repayment of its existing $1.75 billion term loan B and an amendment and extension of its existing $100 million revolving credit facility.

Along with repaying a portion of the existing term loan B, the new term loan will be used with cash on the balance sheet to fund a dividend to shareholders, which was reduced by $200 million with the loan downsizing, and pay fees and expenses.

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

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