Heidrick & Struggles draws down $100 million of $175 million available under revolver

By Rebecca Melvin

New York, March 24 – Heidrick & Struggles International, Inc. drew down $100 million of the $175 million available under its revolving credit agreement, according to an 8-K filing with the Securities and Exchange Commission.

The revolver is part of a credit agreement with Bank of America, NA as administrative agent inked Oct. 26, 2018 and which provides an expansion feature allowing the company to increase the revolver by up to $75 million.

Borrowings currently bear interest at Libor plus 177 basis points.

The company chose to draw down a portion of the available funds as a precautionary measure to boost its cash position and enhance financial flexibility in light of the global markets’ uncertainty caused by the Covid-19 pandemic.

The company believes that it has more than sufficient liquidity even prior to taking the action, but elected to draw down the available funds out of an abundance of caution. The proceeds are being held on the company’s balance sheet and may be used for working capital, capital expenditures, permitted acquisitions as defined in the credit agreement and other general purposes.

Heidrick & Struggles is a leadership consulting services company based in Chicago.

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