Creative Circle sets first- and second-lien term loan talk with launch

By Sara Rosenberg

New York, May 28 - Creative Circle LLC released price talk on its $150 million first-lien term loan (B1/B+) and $35 million second-lien term loan (Caa1/CCC+) in connection with its bank meeting on Wednesday, according to a market source.

The first-lien term loan is talked at Libor plus 450 basis points with a 1% Libor floor and an original issue discount of 99, and the second-lien term loan is talked at Libor plus 800 bps with a 1% Libor floor and a discount of 99, the source said.

Included in the first-lien term loan is 101 soft call protection for six months, and the second-lien term loan has call protection of 102 in year one and 101 in year two.

In addition to the term loans, the company's $200 million credit facility provides for a $15 million revolver (B1/B+).

The facility has a maximum total leverage ratio.

Commitments are due on June 11.

Societe Generale is the lead arranger on the deal.

Proceeds will be used to refinance existing debt and fund a dividend.

Morgan Stanley Global Private Equity is the sponsor.

Senior leverage is 3.7 times, and total leverage is 4.5 times. Total leverage came in from the previously anticipated 4.6 times due to better than expected performance, the source added.

Creative Circle is a Los Angeles-based provider of specialized freelance and permanent staffing for advertising, creative and digital/IT marketing talent.

© 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.