Creative Circle raises second-lien loan spread to Libor plus 850 bps

By Sara Rosenberg

New York, June 24 – Creative Circle LLC lifted pricing on its $35 million second-lien term loan (Caa1/CCC+) to Libor plus 850 basis points from Libor plus 800 bps, according to a market source.

In addition, the original issue discount on the second-lien term loan was changed to 98˝ from 99, the source said.

The second-lien loan still has a 1% Libor floor and call protection of 102 in year one and 101 in year two.

Meanwhile, pricing on the $150 million first-lien term loan (B1/B+) remained at Libor plus 450 bps with a 1% Libor floor and an original issue discount of 99, but the 101 soft call protection was extended to one year from six months, the source continued.

The company’s $200 million credit facility also provides for a $15 million revolver (B1/B+).

The facility has a maximum total leverage ratio.

Societe Generale is the lead arranger on the deal. Union Bank joined on as a syndication agent, and NewStar Financial was named as a documentation agent.

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.

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

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