Spherion amends, extends asset-based revolver through July 2013

By Angela McDaniels

Tacoma, Wash., July 16 - Spherion Corp. said it successfully amended its $250 million asset-based revolving credit facility, extending its term to July 2013 from July 2010.

Compared to the company's previously existing facility and varying based upon usage, interest rate spreads were increased by 200 basis points to 250 bps for Libor-based borrowings, letter-of-credit fees were increased by 187.5 bps to 237.5 bps and unused line fees were increased by 25 bps to 37.5 bps.

No financial covenants are in effect as long as excess availability of $30 million is maintained. At closing, excess availability was about $110 million, and borrowings outstanding under the facility were less than $5 million, according to a company news release.

The company said that in the future, excess availability may be reduced if the trailing-12-month fixed charge coverage ratio falls below a certain level.

"This amendment to our credit facility helps to ensure over the next several years that we continue to have the capital resources to support operations and growth initiatives as market conditions improve," Roy Krause, president and chief executive officer of Spherion, said in the release.

Spherion is a recruiting and staffing company based in Fort Lauderdale, Fla.

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