Ancestry.com plans to redeem 11% notes and 9 5/8%/10 3/8% PIK notes

By Angela McDaniels

Tacoma, Wash., Sept. 26 – Ancestry.com LLC plans to redeem all of the 11% senior notes due 2020 issued by Ancestry.com Inc. and 9 5/8%/10 3/8% PIK senior notes due 2018 issued by Ancestry.com Holdings LLC, according to an 8-K filing with the Securities and Exchange Commission.

Ancestry.com Inc. is the company's indirect subsidiary, and Ancestry.com Holdings is the parent of the company.

The company expects to fund the redemption with new secured credit facilities. Borrowings will also be used to pay off Ancestry.com Inc.’s existing credit facilities and to fund a return of capital to shareholders.

The company expects its cash and cash equivalents to total about $170 million as of Sept. 30 and its long-term debt to total about $1.03 billion as of that date. This amount does not include the $390.2 million of PIK notes.

While not required, Ancestry.com LLC has made and intends to pay future distributions or loans to Ancestry.com Holdings related to the PIK notes.

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

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