G&K gets $300 million revolver via JPMorgan, Wells, Bank of America

By Sara Rosenberg

New York, July 2 - G&K Services Inc. closed on a new $300 million three-year revolving credit facility, according to an 8-K filed with the Securities and Exchange Commission on Thursday.

JPMorgan, Wells Fargo and Bank of America acted as the joint lead arrangers and bookrunners on the deal that was completed on July 1, with JPMorgan the administrative agent.

Pricing on the revolver can range from Libor plus 225 basis points to 325 bps and the commitment fee can range from 25 bps to 50 bps, based on leverage.

There is a $150 million accordion feature.

Financial covenants include consolidated total debt to consolidated EBITDA of not greater than 3.50 to 1.0, consolidated EBITDA to consolidated interest expense of at least 3.00 to 1.00, and consolidated net worth of at least the sum of $312 million plus 35% of consolidated net income for the applicable fiscal quarter.

The new facility replaces the company's previous credit facility, which was scheduled to mature in August 2010.

G&K is a Minneapolis-based provider of branded identity apparel programs and facility services.

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