Comforce amends revolver, increasing borrowing base, lowering rate, extending tenor

By Sara Rosenberg

New York, July 18 - Comforce Corp. amended its revolving credit facility, increasing the borrowing base, lowering the interest rate under certain conditions and extending the maturity date by about three years to July 24, 2010, according to an 8-K filed with the Securities and Exchange Commission Tuesday.

Under the amendment, the borrowing base was changed to $110 million, based generally upon 87% of eligible accounts receivable, from $85 million, based generally upon 85% of eligible accounts receivable.

As for the interest rate, that will be lowered to Libor plus 150 basis points if the company's fixed-charge coverage ratio is greater than 1.75:1.00.

Borrowings under the revolver will be used to fund the Aug. 16 redemption of $21.42 million of the company's 12% senior notes due Dec. 1, 2007.

PNC Bank is the agent on the revolver.

The amendment was completed on July 13.

Comforce is a Woodbury, N.Y.-based provider of outsourced staffing management services, specialty staffing and consulting services.

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