Korn Ferry amends credit agreement for $150 million revolver due 2020

By Marisa Wong

Madison, Wis., June 9 – Korn/Ferry International entered into a second amendment to its credit agreement dated Jan. 18, 2013 with Wells Fargo Bank, NA as lender, with the changes effective as of June 5, according to an 8-K filing with the Securities and Exchange Commission.

The amended credit agreement provides for a $150 million senior unsecured revolving credit facility that includes a letter-of-credit subfacility of up to $15 million.

As of June 5, the company had about $147.2 million of availability under the credit facility, the proceeds of which may be used for ongoing working capital and other general corporate purposes.

Loans will bear interest at adjusted Libor plus 87.5 basis points to 175 bps, based on the company’s total funded debt to adjusted EBITDA ratio.

In addition, the company will be required to pay a quarterly fee ranging from 25 bps to 40 bps on the average daily unused amount of the facility, based on the company’s consolidated leverage ratio.

The amended credit agreement provides for an optional increase in the facility to up to $200 million prior to Dec. 3, 2019.

The facility matures on June 3, 2020 and may be prepaid and early terminated at any time without premium or penalty.

The credit agreement requires the company to maintain a minimum adjusted EBITDA of not less than $70 million and a maximum consolidated leverage ratio not to exceed 2.25 to 1.00.

Korn Ferry is an executive search firm based in Los Angeles.

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