ManpowerGroup gets $600 million five-year revolving credit facility

By William Gullotti

Buffalo, N.Y., May 27 – ManpowerGroup Inc. entered a new $600 million five-year revolving credit facility with JPMorgan Chase Bank, NA as administrative agent on Friday, according to an 8-K filing with the Securities and Exchange Commission.

The new revolver matures May 27, 2027 and provides the option of two one-year extensions, subject to lender approval.

In certain circumstances, the company may request to increase the facility up to $300 million, to be issued in the form of incremental term loans. The facility also includes a $50 million sublimit for swingline loans.

Facility borrowings will bear interest at SOFR, Euribor, TIBO, CDOR or Sonia plus a margin ranging from 80.5 basis points to 120 bps. There is also a facility fee ranging from 7 bps to 17.5 bps on the unused portion of the revolver. The margin and fees are determined by ManpowerGroup’s index debt ratings, as specifically determined by Moody’s Investors Service and S&P Global Ratings.

ManpowerGroup is required to maintain a leverage ratio of consolidated adjusted debt to consolidated EBITDA of less than 3.5 to 1. The ratio may be increased to 4 to 1 on two occasions, each subject to certain conditions involving acquisitions and adjusted covenant elections. The company is also required to maintain a fixed charge coverage ratio of no less than 1.5 to 1.

JPMorgan Chase Bank is also a joint bookrunner and joint lead arranger with BNP Paribas Securities Corp. and Citibank, NA, which are also the co-syndication agents.

ING Bank NV, Dublin Branch, Societe Generale, Unicredit Bank AG, New York Branch and U.S. Bank NA are the co-documentation agents.

There is also a section indicating that an ESG component was considered in the process of establishing the revolver, however the sustainability targets were not yet determined and/or agreed upon as of the facility’s effective date. J.P. Morgan Securities LLC is the sustainability structuring agent.

The new revolver replaces the company’s thrice amended and restated $600 million agreement with Citibank, NA as administrative agent, initially entered Oct. 5, 2011. The company incurred no early termination penalties in the transaction.

The employment services company is based in Milwaukee.

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