G&K Services to pay revolver via $75 million via notes issue

By Jennifer Chiou

New York, July 7 - G&K Services, Inc. said it will use the proceeds of a $75 million private placement of senior notes to repay outstanding debt under its revolving credit facility.

The unsecured floating-rate notes are due June 30, 2015 and pay interest at Libor plus 60 basis points.

"Our capital structure objectives center on capital availability, flexibility in terms and conditions, maintaining an appropriate debt maturity schedule and minimizing our cost of capital," said Glenn Stolt, vice president and treasurer, in a news release.

"The issuance of these notes supports each of our objectives. Further, this private placement of senior notes combined with the asset securitization program we completed last December and other outstanding debt arrangements diversifies our sources of capital at a lower effective cost of debt."

Minneapolis-based G&K Services, Inc. provides branded identity apparel programs.

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