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Ancestry launches upsized $1.2 billion notes in resized secured and unsecured tranches
By Paul A. Harris
Portland, Ore., Nov. 24 – Arches Buyer Inc., which does business as Ancestry.com, the online family history services provider, upsized its two-part offering of high-yield notes to $1.2 billion from $1 billion, launching the oversubscribed deal in two resized tranches on Tuesday, according to market sources.
An upsized $700 million amount of 7.5-year senior first-lien notes (B1/B) launched at 4¼%, at the tight end of the 4¼% to 4½% price talk (initial talk was in the low-to-mid 5% area). The secured tranche is upsized from $450 million.
A downsized $500 million amount of eight-year senior unsecured notes (Caa1/CCC+) launched at 6 1/8%, tighter than the 6¼% to 6½% price talk (initial talk was in the mid-to-high 7% area). The unsecured tranche is downsized from $550 million.
Books for both tranches of the Rule 144A and Regulation S deal were heard to contain in excess of $4 billion of orders at midday Monday, a trader said.
Final order confirmations were due late Tuesday morning, and the deal is set to price later in the Tuesday session.
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.
With the $200 million upsizing of the notes offering, the company decreased its concurrent bank loan by $200 million, to $1.6 billion from $1.8 billion.
Proceeds, together with bank debt, 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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