Kforce gets new $300 million revolver, replacing $170 million facility

By Wendy Van Sickle

Columbus, Ohio, May 25 – Kforce Inc. completed a new five-year $300 million revolving credit facility, replacing a $170 million asset-based revolver, according to a press release and an 8-K filing with the Securities and Exchange Commission.

Wells Fargo Securities, LLC was the lead arranger and bookrunner, Bank of American, NA the syndication agent, Regions Bank and BMO Harris Bank, NA the co-documentation agents and Wells Fargo Bank, NA the administrative agent.

Borrowings bear interest at Libor plus a margin ranging from 125 basis points to 175 bps, depending on the total leverage ratio. The initial margin is 137.5 bps. The commitment fee can range from 20 bps to 35 bps and is initially 20 bps.

There is a $150 million accordion feature.

The company drew $115 million under the credit agreement at closing to pay off the prior credit facility. Future borrowings may be used for working capital and general corporate purposes.

Kforce must maintain a fixed-charge coverage ratio of no less than 1.25 to 1.00 and a total leverage ratio of no greater than 3.25 to 1.00.

“This new facility provides us with several structural advantages over our previous credit facility,” David M. Kelly, Kforce chief financial officer, said in the news release.

“The increase in the size of the facility provides us with much greater agility and flexibility in accessing capital to make necessary and prudent investments in profitably growing our business and generating long-term shareholder value.”

Kforce is a Tampa, Fla.-based staffing firm.

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