ServiceMaster to downsize revolver following year-end TruGreen spinoff

By Toni Weeks

San Luis Obispo, Calif., Dec. 4 - ServiceMaster Co. amended its syndicated revolving credit agreement on Nov. 27, according to an 8-K filing with the Securities and Exchange Commission.

The amendment will reduce the commitments of some lenders under the credit agreement by an amount equal to their commitments in an upcoming revolving credit facility to be arranged by TruGreen LP.

The TruGreen revolver, which has not yet been negotiated, will be arranged in connection with the spinoff of the TruGreen business via a tax-free pro rata dividend to the stockholders of indirect parent company ServiceMaster Global Holdings, Inc.

ServiceMaster said in the filing that the current facility has about $324.2 million of available borrowing capacity through July 24, 2014 and roughly $265.2 million of available borrowing capacity from July 25, 2014 through Jan. 31, 2017.

After the spinoff of the TruGreen business, which is expected to close by Dec. 31, the ServiceMaster revolver will be reduced such that the company expects to have about $254.2 million of available borrowing capacity through July 24, 2014 and about $195.2 million of available borrowing capacity from July 25, 2014 through Jan. 31, 2017.

ServiceMaster noted in the filing that it will continue to have access to letters of credit of up to $75 million through Jan. 31, 2017.

The amendment also increases the size of the miscellaneous restricted payments basket, according to the filing.

ServiceMaster is a Memphis-based provider of maintenance services to residential and commercial customers.

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