Gevity HR gets $80 million credit facility via Comerica and KeyBank

By Sara Rosenberg

New York, June 1 - Gevity HR Inc. closed on a new $80 million credit facility on Monday, according to an 8-K filed with the Securities and Exchange Commission.

Comerica Bank and KeyBank acted as the co-lead arrangers on the deal, with Comerica the administrative agent.

The facility consists of a $60 million three-year term loan priced at Libor plus 500 basis points and a $20 million three-year revolver priced at Libor plus 425 bps with a 75 bps commitment fee.

Financial covenants include a minimum consolidated fixed coverage ratio, a maximum consolidated leverage ratio, a maximum consolidated total liabilities to consolidated effective tangible net worth ratio, a minimum current ratio, a minimum cash balance, a collections covenant and a minimum consolidated profitability covenant.

Proceeds were used to help fund TriNet Group Inc.'s acquisition of Gevity in an all-cash transaction valued at about $98 million.

Gevity is a Bradenton, Fla.-based human resources outsourcing company and TriNet is a San Leandro, Calif.-based provider of human resources outsourcing services.

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