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CAA Plans to Refinance Debt, Buy Back Roughly $400 Million

Creative Artists Agency, one in every of Hollywood’s prime expertise companies, is wanting elevate a bit of over $1 billion it might use to refinance a few of its debt and purchase again worker shares, sources with information of the scenario instructed TheWrap.

The deal, which CAA hopes will come collectively within the subsequent few weeks, would permit the corporate to refinance $757 million in debt it at the moment holds. Essentially, as a substitute of paying again $757 million, CAA would have extra favorable phrases below which to pay again the $1.15 billion it’s trying to elevate.

Representatives for CAA declined to remark.

CAA would use the rest of the $1.15 billion it’s utilizing to refinance — some $393 million — to purchase again minority stakes of worker shares. Sources instructed TheWrap CAA would solely provide to purchase again worker shares, which they’re not obligated to promote, and never shares held by institutional buyers.

CAA is probably going profiting from market that in the mean time permits firms to borrow cash simpler and below extra favorable phrases. Typically, shopping for again shares is a present of well being of the corporate and a option to reward the corporate’s prime earners.

Current CAA stakeholder TPG is arranging the financing deal for the company, together with Bank of America, Credit Suisse, UBS and others.

CAA’s Bryan Lourd, Richard Lovett and Kevin Huvane may have the chance to promote a minority of their shares. The majority of CAA’s 2,000 and a few workers, nonetheless, would not have fairness stakes within the company.

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