Korn/Ferry gets amended $650 million revolver, option to up loans

Chicago, Dec. 20 – Korn/Ferry International entered into an amended and restated credit agreement Wednesday that provides for a $650 million five-year senior secured revolving credit facility, according to an 8-K filing with the Securities and Exchange Commission.

The interest rate is either Libor plus 125 basis points to Libor plus 200 bps annual rate or Base rate plus 25 bps to 100 bps depending on the company’s consolidated total leverage ratio.

The company may increase the term loan commitments or revolving commitments by up to $250 million.

The credit agreement contains financial covenants that require the company to maintain a net funded debt to EBITDA ratio not greater than 3.25 to 1.00, and an adjusted EBIT to interest expense ratio of at least 3.25 to 1.00.

Proceeds will be used to refinance Korn/Ferry’s existing credit agreement dated June 15, 2016 and for working capital and other general corporate purposes.

The obligations under the credit agreement are secured by substantially all of the assets of the company and those of its subsidiaries that are guarantors under the credit agreement.

Wells Fargo Securities, LLC and Merrill Lynch, Pierce, Fenner & Smith Inc. are the joint lead arrangers and bookrunners. Wells Fargo Bank, NA is the administrative agent. Bank of America NA is the syndication agent. BMO Harris Bank, NA and Bank of the West are the documentation agents.

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

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