Ancestry.com Announces Refinancing of Credit Facility

If you follow the finances of Ancestry.com LLC, the parent company of Ancestry.com Inc., you will be interested in the company’s announcement today of a major refinancing. The announcement says (in part):

“Ancestry.com LLC today announced that its subsidiary, Ancestry.com Inc. (the “Company”), intends to refinance its credit facility. The Company expects that the new credit facility will consist of a $735 million first lien term loan that matures in 2022 and a $100 million revolving credit facility that matures in 2020. The Company anticipates that the proceeds of the new credit facility, together with cash on the balance sheet, will be used to repay the existing credit facility in full, pay a cash dividend to shareholders, pay fees and expenses related to the refinancing, and for general corporate purposes. Closing is expected to occur in August 2015, subject to market and other customary conditions.”

The full announcement is available at http://goo.gl/1CEHuY.

12 Comments

If Ancestry are so in debt is it safe to renew an annual subscription or could they go down the drain leaving me anything up to $280 out of pocket?

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    I doubt the company will go down, but my goodness–maybe that is the way the corporate world functions, but I would like to see some fiscal responsibility rather than playing with which walnut shell has the peanut.

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    Sure could?, put your money into a pig in the poke?

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Looks like Ancestry is doing what most corporations are doing, borrowing money, taking money out for them and refinancing again and again

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    Don’t we all do that with our homes with built up equity, refinance, take out money, paid it off then refinance again

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The hedge fund owners are borrowing money to be able to give some to the shareholders (themselves). Fascinating. Maybe they’ve given up on trying to sell it, and are just seeing how much cash they can squeeze out of it.

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Look, if you want to get some money back from Ancestry, invest in the company and go for the dividends. Isn’t there a saying, “if you can’t beat them, join them”? Does my making this statement mean that I like the company or the way they operate? No. From an investment standpoint, however, they do have a track record.

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If the owners are squeezing out cash then we can expect to see the end of discounts (already happening) and the end of new record sources or a least a big reduction in them. Fortunately, there are more than one fish in this pond for genealogists to choose from…

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Ancestry.com which I have found almost invariably sneaky, etc. will have its way paid by subscribers of which I am not one nor ever will be at the price they charge. I dislike to read such and such is free but it really isn’t. I don’t like to click on a link and find it’s really ancestry.com Enough already!

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Borrow money to pay dividends?
I would rather save my money than borrow against my house.

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No I do not, and neither should others, borrow money from my home’s equity to pay for something else. We save for things we need, have money set aside for emergencies, and save for things we want, (and yes most things are wants not needs). If big business did likewise they could make even more money and not have to charge as much. Then they would gain more customers and make even more money.

I am not sure what falls under the credit department but it seems a little scary that one must borrow against its own credit!

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