On Assignment launches $875 million term loan B at Libor plus 350 bps

By Sara Rosenberg

New York, May 19 – On Assignment Inc. launched on Tuesday its $875 million seven-year covenant-light term loan B with price talk of Libor plus 350 basis points with a 0.75% Libor floor and an original issue discount of 99.5, according to a market source.

The term loan has 101 soft call protection for six months, the source said.

The company’s $975 million credit facility (BB) also includes a $100 million revolver that is expected to be undrawn at close.

Commitments are due on June 1, the source added.

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

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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