On Assignment to launch $975 million credit facility on May 19

By Sara Rosenberg

New York, May 11 – On Assignment Inc. is scheduled to hold a bank meeting on the morning of May 19 to launch a $975 million credit facility, according to sources.

Wells Fargo Securities LLC is the lead bank on the deal.

The facility consists of a $100 million revolver that is expected to be undrawn at close and an $875 million term loan B, sources said.

Proceeds will be used to help fund the acquisition of Creative Circle LLC for $540 million in cash and $30 million of common stock, and to refinance existing debt. The purchase price for Creative Circle may include up to an additional $30 million based on future operating performance.

Pro forma leverage will be 3.7 times based on June 30 LTM adjusted EBITDA and excluding potential synergies.

Closing is expected this quarter, subject to regulatory approvals and customary conditions.

On Assignment is a Calabasas, Calif.-based provider of diversified professional staffing solutions. Creative Circle is a digital/creative staffing firm.

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