Ancestry starts roadshow for $1 billion two-part secured and unsecured notes offering

By Paul A. Harris

Portland, Ore., Nov. 17 – Arches Buyer Inc., which does business as Ancestry.com, the online family history services provider, started a roadshow on Tuesday for a $1 billion two-part offering of high-yield notes, according to market sources.

The Rule 144A and Regulation S deal includes $450 million of 7.5-year senior first-lien notes (B1/B) with initial talk in the low-to-mid 5% area.

The offering also includes $550 million of eight-year senior unsecured notes (Caa1/CCC+) with initial talk in the mid-to-high 7% area.

An investor call is scheduled for 11 a.m. ET on Wednesday.

The roadshow runs through Monday.

BofA Securities Inc., Credit Suisse Securities (USA) LLC, Morgan Stanley & Co. LLC, Barclays and J.P. Morgan Securities LLC are the joint bookrunners. Blackstone is the co-manager.

The notes in both tranches become callable after three years at par plus 50% of the respective coupons. They also feature 40% equity clawbacks at par plus the respective coupons during the non-call period and 101% poison puts.

Proceeds, together with new credit facilities, cash and sponsor equity, will be used to finance the acquisition of Ancestry.com, a Lehi, Utah-based provider of family history and consumer genomics services, by Blackstone, as well as to pay off existing credit facilities and provide cash on hand to Ancestry.com.

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