Healthcare Services renews revolver for $300 million maturing in 2027

By Wendy Van Sickle

Columbus, Ohio, Nov. 28 – Healthcare Services Group, Inc. renewed its line of credit with PNC Bank, NA as administrative agent on Nov. 22, according to an 8-K filing with the Securities and Exchange Commission.

The new $300 million revolver matures on Nov. 22, 2027. It has a $50 million sublimit for swingline loans and a $125 million submit for letters of credit. An accordion feature allows the revolver to be increased to up to $500 million.

Borrowings may be used for general corporate purposes.

The new revolver amends the company’s $475 million revolver dated Dec. 21, 2018, which was set to expire on Dec. 21, 2023.

The benchmark rate has been changed to SOFR from Libor. The margin above the benchmark is based on net leverage ratio and ranges from 165 basis points to 210 bps. The commitment fee ranges from 15 bps to 30 bps.

PNC Bank is the documentation agent.

PNC Capital Markets is the sole lead arranger.

Based in Bensalem, Pa., the company delivers housekeeping, laundry, dining and nutrition services to the health care industry.

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