FirstStudent, Terra Millennium, Creative Artists release guidance; BBB Industries on deck

By Sara Rosenberg

New York, June 16 – In the primary market on Thursday, FirstStudent & FirstTransit, Terra Millennium Corp. and Creative Artists Agency all came out with price talk on their term loan transactions in connection with their lender calls.

Furthermore, BBB Industries LLC emerged with plans to bring its buyout financing first-lien term loan B to market next week.

FirstStudent talk

FirstStudent held its lender call on Thursday morning and announced price talk on its non-fungible $720 million incremental term loan B due July 21, 2028 and non-fungible $50 million incremental term loan C due July 21, 2028 at SOFR+10 basis points CSA plus 400 bps with a 0.5% floor and an original issue discount of 94 to 95, a market source remarked.

The term loan debt, which is being sold as a strip, has a 7.5 bps ESG permanent step-down based on outlined KPI, tested in June 2025, and 101 soft call protection for six months.

Commitments are due at noon ET on June 28, the source added.

Barclays, Morgan Stanley Senior Funding Inc., BMO Capital Markets, RBC Capital Markets, Jefferies LLC, Credit Suisse Securities (USA) LLC, TD Securities (USA) LLC, Citizens Bank, BNP Paribas Securities Corp., Deutsche Bank Securities Inc., MUFG and Stifel are leading the deal.

FirstStudent buying Total

FirstStudent will use the incremental term loans with $140 million of sponsor cash equity, $140 million of PIK preferred equity and $100 million of PIK seller notes to fund the acquisition of Total Transportation Corp.

Closing is expected by the end of summer.

FirstStudent is a Cincinnati-based provider of student transportation and public transit management and contracting services. Total Transportation is a Brooklyn, N.Y.-based provider of general and special education student transportation, paratransit and charter services.

Terra proposed terms

Terra Millennium released talk of SOFR plus 550 bps with a 0.5% floor, an original issue discount of 93 to 94 and 101 soft call protection for six months on its $435 million seven-year covenant-lite first-lien term loan and $100 million delayed-draw covenant-lite first-lien term loan that launched with a call in the morning, a market source said.

The company’s $585 million of credit facilities (B2/B) also include a $50 million five-year revolver.

Commitments are due on June 28, the source added.

Macquarie Capital and Stifel are leading the deal, which will be used to help fund the buyout of the company by H.I.G. Capital from Court Square Capital Partners.

Closing is expected in this quarter, subject to customary conditions.

Terra Millennium is a Salt Lake City-based provider of outsourced industrial maintenance services, including refractory maintenance and other specialized services.

Creative Artists guidance

Creative Artists Agency held a lender call at 1 p.m. ET, launching a $325 million term loan B-2 (B2/B) due November 2026 at talk of SOFR plus 425 bps with a 1% floor, an original issue discount of 96 and 101 soft call protection for six months, according to a market source.

Commitments are due at noon ET on June 23, the source added.

BofA Securities Inc., Mizuho, Credit Suisse Securities (USA) LLC, Truist, UBS Investment Bank and Nomura are leading the deal that will be used to help fund the acquisition of International Creative Management LLC, a talent agency.

Creative Artists is a talent and literary agency.

BBB readies deal

BBB Industries set a lender call for 1 p.m. ET on Tuesday to launch a $1.19 billion seven-year first-lien term loan B, a market source remarked.

The first-lien term loan has 101 soft call protection for six months.

Commitments are due at 5 p.m. ET on June 28, the source added.

JPMorgan Chase Bank, Goldman Sachs Bank USA, Antares Capital, Wells Fargo Securities LLC, Deutsche Bank Securities Inc., UBS Investment Bank, Nomura, Fifth Third and ING are leading the deal that will be used with a privately placed second-lien term loan to help fund the buyout of the company by Clearlake Capital Group LP. Genstar Capital and BBB’s management team will continue to be investors in the company.

Closing is expected this year, subject to customary conditions.

BBB Industries is a Daphne, Ala.-based sustainable manufacturer of automotive replacement parts.

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