Creative Artists Agency, one of Hollywood’s top talent agencies, is looking raise a little over $1 billion it would use to refinance some of its debt and buy back employee shares, sources with knowledge of the situation told TheWrap.
The deal, which CAA hopes will come together in the next few weeks, would allow the company to refinance $757 million in debt it currently holds. Essentially, instead of paying back $757 million, CAA would have more favorable terms under which to pay back the $1.15 billion it is looking to raise.
Representatives for CAA declined to comment.
CAA would use the remainder of the $1.15 billion it’s using to refinance — some $393 million — to buy back minority stakes of employee shares. Sources told TheWrap CAA would only offer to buy back employee shares, which they’re not obligated to sell, and not shares held by institutional investors.
CAA is likely taking advantage of market that at the moment allows companies to borrow money easier and under more favorable terms. Typically, buying back shares is a show of health of the company and a way to reward the company’s top earners.
Current CAA stakeholder TPG is arranging the financing deal for the agency, along with Bank of America, Credit Suisse, UBS and others.
CAA’s Bryan Lourd, Richard Lovett and Kevin Huvane will have the opportunity to sell a minority of their shares. The majority of CAA’s 2,000 and some staff, however, do not have equity stakes in the agency.
Hollywood's Top 10 Art Collectors, From Leonardo DiCaprio to David Geffen (Photos)
Wealth-X has ranked the value of the art collections of some of showbiz world's biggest collectors, click through to see the top 10 in reverse order.
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10. Leonardo DiCaprio Estimated value of art collection: $10 million The Oscar winner has picked up works by the likes of Jean-Michel Basquiat and Takashi Murakami.
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9. Michael Ovitz Estimated value of art collection: $12 million The former agent (and MoMA board member) built a villa in Benedict Canyon to house his acquisitions, which include works by Pablo Picasso, Jasper Johns and Mark Rothko.
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8. Jacob Bloom Estimated value of art collection: $14 million The longtime Hollywood attorney and his wife, Ruth, have assembled a remarkable collection that includes works by Chinese artist Ai Weiwei, Jeff Koons, John Baldessari and Matthew Barney.
7. Brad Pitt Estimated value of art collection: $25 million The actor spent a reported $1 million on a painting of an auto racetrack by German artist Neo Rauch in 2009.
6. Steve Tisch Estimated value of art collection: $50 million The film producer and chairman of the New York Giants serves a trustee of LACMA, who donated Christian Marclay's "The Clock" to the museum.
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5. Jack Nicholson Estimated value of art collection: $150 million The Oscar-winning actor has compiled a collection that includes works by Picasso, Matisse, Modigliani, Magritte and Botero.
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4. Steven Spielberg Estimated value of art collection: $240 million The director and producer has quietly amassed a collection filled with lots of Norman Rockwell as well as Edward Hopper and many Impressionists.
2. Arnon Milchan Estimated value of art collection: $600 million The producer of "The Revenant" has assembled works by Pablo Picasso, Francis Bacon and Vincent Van Gogh that he's spread among his homes in L.A., Paris and Israel.
2. George Lucas Estimated value of art collection: $600 million The "Star Wars" filmmaker, whose personal collection includes works by Norman Rockwell, in 2016 abandoned plans to open the Lucas Museum of Narrative Art in Chicago.
1. David Geffen Estimated value of art collection: $2.3 billion Geffen's collection is estimated to be worth about a third of his personal net worth, even though he sold even though he sold two significant works – Jackson Pollock’s “Number 5″ and Willem de Kooning’s “Woman III” – in 2006 for $277 million combined.
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Wealth-X ranks the value of the art collections of some of showbiz world’s biggest collectors
Wealth-X has ranked the value of the art collections of some of showbiz world's biggest collectors, click through to see the top 10 in reverse order.