Moody’s assigns Arches Buyer B2

Moody’s Investors Service said it assigned a B2 corporate family rating and a B2-PD probability of default rating to Arches Buyer Inc. (Ancestry). Moody’s also gave a B1 rating to Ancestry’s proposed senior secured credit facilities and senior secured notes and a Caa1 rating to the company’s planned senior unsecured notes.

“The proposed first-lien senior secured credit facilities ($1.8 billion term loan due 2027, $250 million revolver due 2025 and $450 million secured note due 2028) are rated B1 and reflect loss absorption in a distress scenario from the unsecured notes. The rating on the proposed $550 million of senior unsecured notes is Caa1, reflecting its junior position in the capital structure,” Moody’s said in a press release.

Ancestry plans to use the proceeds to finance the leveraged buyout by Blackstone Group, including the repayment of debt at Ancestry.com Operations Inc. The ratings of Ancestry.com Operations, including its B2 CFR and all associated instrument ratings, will be withdrawn upon closing of the transaction and repayment of debt.

The outlook is stable.

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