Korn Ferry adds $500 million delayed-draw term loan, extends revolver

By Marisa Wong

Los Angeles, June 24 – Korn Ferry entered into a first amendment on June 24 to its credit agreement dated Dec. 16, 2019 with Bank of America, NA as administrative agent to provide for a $500 million five-year delayed-draw term loan facility, according to an 8-K filing with the Securities and Exchange Commission.

The amendment also extends the maturity of the $650 million five-year senior secured revolving credit facility to five years from the date of the amendment.

In addition, the amendment replaces Libor with SOFR and replaces the three financial covenants under the existing credit agreement with a financial covenant that requires the company to maintain a maximum consolidated secured leverage ratio of 3.50 to 1.00.

Extensions of credit under the delayed-draw facility are available to the company in up to two advances during the one-year period from the date of the amendment.

Amounts outstanding under the amended credit agreement will bear interest at term SOFR plus a SOFR adjustment of 10 bps plus an interest rate margin between 112.5 basis points to 200 bps, depending on the company’s consolidated net leverage ratio.

In addition, the company will be required to pay a ticking fee of 20 bps on the actual daily unused portion of the delayed-draw facility during the availability period and a quarterly commitment fee ranging from 17.5 bps to 30 bps, based on the consolidated net leverage ratio, on the actual daily unused amount of the revolver.

Korn Ferry is a Los Angeles-based managment consulting firm.

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