S&P rates Ancestry add-on B

S&P said it assigned B issue-level and 3 recovery ratings to Arches Buyer Inc. (doing business as Ancestry) planned $375 million non-fungible incremental term loan B due 2027. The 3 recovery rating indicates meaningful (50%-70%; rounded estimate: 50%) recovery in default.

“Our B issue-level rating and 3 recovery rating on the company's $250 million revolving credit facility, $1.9 billion first-lien term loan, and $950 million senior secured notes and our CCC+ issue-level rating and 6 recovery rating on its $500 million senior unsecured notes are unaffected,” S&P said in a press release. A 6 recovery rating indicates minimal (0%-10%; rounded estimate: 0%) recovery.

The company plans to use the loan, along with cash and after expenses, to fund a $500 million dividend to its shareholders.

The outlook is stable.

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