Gevity may not be able to comply with monthly EBITDA requirement

By Sara Rosenberg

New York, Nov. 5 - Gevity HR Inc. may not be able to meet its monthly cumulative EBITDA credit facility covenant during the fourth quarter if current operating trends continue, according to an 8-K filed with the Securities and Exchange Commission on Monday.

If the company does in fact require a waiver of the EBITDA covenant in the fourth quarter and a waiver is not obtained, the default would have a material impact on cash flow and Gevity's ability to conduct its operations.

The monthly cumulative EBITDA covenant is only in effect through Dec. 31 and is not required thereafter.

Bank of America and Wachovia are the lenders under the deal.

Gevity is a Bradenton, Fla.-based provider of payroll, insurance, and human resource outsourcing services to small and medium-sized businesses.

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