Spherion plans to terminate revolver as cash resources exceed capital requirements

By Sara Rosenberg

New York, May 13 - Spherion Corp. anticipates canceling its $325 million revolver during the second quarter of 2002, according to a filing with the Securities and Exchange Commission. The revolver does not expire until June 30, 2004.

The termination of the credit facility is due to an excess of cash resources needed for capital requirements, according to the SEC filing. At March 29, Spherion had total cash resources of $277.1 million, an increase of $16.8 million for the quarter. The $277.1 million was invested primarily in investment-grade money market funds. Of the total amount, $258 million was held in the U.S. and the remainder was held by foreign subsidiaries.

Already, during the second quarter 2002, the company has canceled its $75 million 364-day credit facility with the same group of banks.

Future liquidity may be obtained through a receivables securitization, which based on current levels and existing market conditions could provide a facility anywhere between $225 million and $250 million, the filing said.

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