S&P rates Arches loans B

S&P said it assigned B issue-level and 3 recovery ratings to Arches Buyer Inc.’s planned $1.8 billion term loan due 2027, pari passu $450 million of senior secured notes due 2028 and $250 million senior secured revolving credit facility due 2025.

The agency also gave Arches’ planned $550 million of senior unsecured notes a CCC+ rating 6 recovery rating.

Proceeds will be used by Arches Intermediate Inc. to help Blackstone acquire Ancestry.com Holdings LLC for $4.7 billion.

Arches Intermediate will become Ancestry’s indirect parent. S&P assigned a B issuer rating to the company.

“Our B issuer credit rating on Ancestry reflects its concentration in the niche family history genealogy business, declining DNA kit sales, and its high leverage pro forma for the transaction. These challenges are somewhat offset by the company’s strength in its family history business, usage of which has increased as consumers’ social distance to stem the spread of the Covid-19 pandemic and spend more time utilizing online services such as Ancestry.com,” S&P said in a press release.

The outlook is stable.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.