ICM Settles on City National for Refinancing

International Creative Management said Friday that it agreed to a long-term credit agreement with City National Bank in Beverly Hills, refinancing the debt remaining from the talent agency’s 1988 management buyout and providing it with funds for future expansion.

The deal ends a lengthy quest by ICM to replace its primary lender--Chase Manhattan--without having to sell a piece of the agency to an outside investor.

Other banks wanted ICM to sell a piece of equity to an investor as a condition of refinancing, a move that would have diluted the agency’s partners and probably diminished their influence, executives said.

At one point last year, ICM hired New York investment banking firm Furman Selz to explore selling as much as a 25% stake in the agency.

ICM’s long-term debt is believed to be in the $30-million range. Its debt stemming from its 1988 buyout was as high as $63 million.

Banking sources have said the the relationship with Chase Manhattan Bank, which recently merged with Chemical Bank, had become strained.

City National has longtime ties to Hollywood and is headed by Russell Goldsmith, the former head of Republic Pictures.

ICM ownership is headed by Chairman Jeffrey Berg; President Jim Wiatt, legendary agent Sam Cohn; and Marvin Josephson, the former principal owner who is now a passive investor. In addition, 36 other key executives and agents have pieces of the agency. Among the best-known stars ICM represents are Mel Gibson, Arnold Schwarzenegger and Michelle Pfeiffer.