Ancestry.com is premarketing a deal for its buyout by Blackstone, with Credit Suisse leading the efforts for the first lien term loan, according to three sources following the situation. Meanwhile, Bank of American is leading the efforts for the bond portion, two of the sources added. The bank syndicate also includes JPMorgan, one of the sources and an additional source said.
The tentative financing structure includes a roughly USD 2.3bn first lien term loan and around USD 500m of senior unsecured notes, two of the sources said. Ancestry.com is marketing the deal on about 5x first lien leverage and 6x net total leverage, they added.
Blackstone is acquiring a 75% stake in a deal valued at USD 4.7bn, implying a 10.5x multiple based on the company’s 2020 projection of USD 450m adjusted EBITDA. Existing sponsor GIC will retain a minority stake, while Silver Lake, Permira and Spectrum will exit.
The acquisition is expected to trigger a change of control on the company’s existing debt, as reported.
Ancestry’s B2/B USD 1.384bn Libor+ 425bps TLB due 2026 is quoted at 99.643/100.25 today, in line with recent levels on Markit. Its USD 720m L+ 325bps TLB due 2023 is quoted at 99.675/100.25, down slightly from levels last week at 99.75/100.325, according to Markit.
Ancestry.com and Credit Suisse declined to comment. Bank of America and JPMorgan did not respond to requests for comment.