Kforce amends credit facility, ups borrowing capacity to $170 million

By Toni Weeks

San Luis Obispo, Calif., Dec. 23 – Kforce Inc. amended its existing credit facility on Tuesday with Bank of America, NA as administrative agent and letter-of-credit issuer, increasing the maximum borrowing capacity to $170 million from $135 million and the accordion option to $50 million from $15 million, according to an 8-K filed with the Securities and Exchange Commission.

The interest rate was not changed.

The credit facility now matures on Dec. 23, 2019.

Under the credit facility terms, the company must pay a monthly unused line fee equal to (i) if the average daily aggregate revolver outstandings are less than 35% of the commitments, 35 basis points, or (ii) if the average daily aggregate revolver outstandings are greater than 35% of the amount of the commitments, 0.25% times the amount by which the maximum revolver amount exceeds the sum of the average daily aggregate revolver outstandings during the immediately preceding month or shorter period if calculated for the first month hereafter or on the termination date.

Borrowings are secured by substantially all of the assets of the firm.

If the company is unable to maintain certain minimum availability, it must maintain a fixed-charge coverage ratio of at least 1.00 to 1.00.

Kforce is a Tampa, Fla.-based staffing firm.

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