Kelly Services increases revolver to $200 million, extends it to 2018

By Angela McDaniels

Tacoma, Wash., Dec. 13 - Kelly Services, Inc. amended and restated its revolving credit facility on Wednesday, according to an 8-K filing with the Securities and Exchange Commission.

The revolver amendment makes, among others, the following changes:

• Increases the lenders' commitments to $200 million from $150 million;

• Changes the termination date to Dec. 11, 2018 from March 31, 2016; and

• Reduces pricing. Following the amendment, the interest rate is Libor plus 150 basis points, and the facility fee is 25 bps. The margin now ranges from 130 bps to 187.5 bps, and the facility fee ranges from 20 bps to 37.5 bps. Both are based on the company's leverage ratio.

Also on Wednesday, the company and Kelly Receivables Funding, LLC amended the receivables purchase agreement related to the existing $150 million securitization facility.

The securitization amendment makes, among others, the following changes:

• Changes the termination date to Dec. 9, 2016 from March 31, 2014;

• Introduces a delayed funding option that allows the bank to delay honoring a funding request for up to 35 days in the event there is market dislocation; and

•Reduces the facility fees, letter of credit fees and program fees.

Kelly Services is a Troy, Mich.-based provider of temporary staffing services.

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