Creative Artists hits secondary after terms firm; Millennium rises; Universal Fiber revised

By Sara Rosenberg

New York, Sept. 24 – Creative Artists Agency LLC finalized the issue price on its add-on term loan at the tight end of guidance and then freed up for trading late Thursday, and Millennium Health LLC’s term loan B strengthened with chatter that the company might be filing for bankruptcy.

In more happenings, Universal Fiber Systems LLC increased price talk on its first-lien term loan and made some other documentation changes, and DigiCert released price talk on its first-lien term loan in connection with its bank meeting.

Creative updated, breaks

Creative Artists Agency set the issue price on its fungible $75 million add-on covenant-light term loan at par, the tight end of the 99.75 to par talk and moved up the commitment deadline to 2:30 p.m. ET on Thursday from noon ET on Friday, according to a market source.

The add-on loan is priced at Libor plus 450 basis points with a 1% Libor floor and has 101 soft call protection until Dec. 17, 2015, which is all in line with existing term loan terms.

With final pricing in place, the add-on debt was able to make its way into secondary market late day, with levels quoted at 100¼ bid, 100¾ offered, a trader remarked.

Bank of America Merrill Lynch, Credit Suisse Securities (USA) LLC, Mizuho and UBS AG are leading the deal that will be used to pay down revolver borrowings and for general corporate purposes.

Creative Artists is a Los Angeles-based entertainment and sports firm.

Millennium heads higher

Also in trading, Millennium Health’s term loan B rose following the emergence of reports that the company may file for bankruptcy and give creditors control of the company, according to a market source.

The source said he saw one trader quoting the loan at 41 bid, 46 offered, up from 33 bid, 38 offered on Wednesday, and another trader quoting the paper at 37 bid, 42 offered.

“Millennium is a name that is quoted a lot more than it trades, so unless you talk to honest traders it’s hard to build a narrative around price runs,” the source added.

Millennium is a San Diego-based specialty diagnostics laboratory.

Universal Fiber reworked

Back in the primary, Universal Fiber Systems widened talk on its $165 million first-lien term loan (B1) to Libor plus 525 bps to 550 bps from Libor plus 475 bps to 500 bps, lifted the initial excess cash flow sweep to 75% from 50%, cut the “free and clear” accordion to $25 million from $50 million, eliminated the MFN sunset and eliminated the starter basket for the available amount, a market source remarked.

As before, the first-lien term loan has a 1% Libor floor, an original issue discount of 99 and 101 soft call protection for six months.

The company’s $240 million credit facility also includes a $35 million revolver (B1) and a $40 million second-lien term loan (Caa1).

Universal resets deadline

Commitments for Universal Fiber’s credit facility are due at 5 p.m. ET on Friday, pushed out from Thursday, the source added.

BNP Paribas Securities Corp. and Goldman Sachs Bank USA are leading the deal that will be used to help fund the buyout of the company by H.I.G. Capital.

Universal Fiber Systems is a Bristol, Va.-based manufacturer of high-performance, specialty synthetic fibers for segments of the commercial carpet, transportation carpet, and specialty textile industries.

DigiCert launches

DigiCert held its bank meeting on Thursday, launching its $220 million first-lien term loan (B1/B-) with talk of Libor plus 450 bps with a 1% Libor floor, an original issue discount of 99 and 101 soft call protection for six months, according to a market source.

Commitments are due on Oct. 8, the source said.

The company’s $345 million credit facility also includes a $15 million revolver (B1/B-), and a $110 million second-lien loan (CCC) that was privately placed.

Jefferies Finance LLC is the lead arranger on the first-lien debt.

Proceeds will be used to help fund the buyout of the company by Thoma Bravo LLC from TA Associates, who will remain as a minority shareholder in the company.

DigiCert is a Lehi, Utah-based provider of digital certificates.

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