On Assignment reworks tranche sizes, reduces term loan B pricing

By Sara Rosenberg

New York, May 28 – On Assignment Inc. upsized its revolver to $150 million from $100 million and downsized its seven-year covenant-light term loan B to $825 million from $875 million, according to a market source.

Also, pricing on the term loan was lowered to Libor plus 300 basis points from Libor plus 350 bps, the source said.

The term loan still has a 0.75% Libor floor, an original issue discount of 99.5 and 101 soft call protection for six months.

Commitments are due at noon ET on Friday, accelerated from Monday, the source added.

Wells Fargo Securities LLC is the lead bank on the $975 million credit facility (Ba2/BB).

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.

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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