MINNEAPOLIS--(BUSINESS WIRE)--Mar. 8, 2012--
G&K Services, Inc. (NASDAQ: GKSR) today announced the
successful refinancing of its unsecured revolving credit facility. The
new five-year, $250 million revolving credit facility replaces the
company’s existing revolving credit facility, which was scheduled to
expire on July 1, 2012. The prior credit facility had borrowings of $30
million at the closing of refinancing.
The new credit facility was provided by a syndicate of financial
institutions and arranged by J.P. Morgan, Wells Fargo, and Bank of
America Merrill Lynch. The new facility, which will mature on March 7,
2017, bears interest between 1.0% to 2.0% over LIBOR, depending on the
company’s leverage ratio. As of closing, the company’s borrowing rate
will be reduced by one hundred basis points compared to the current rate
under the previous facility. The revolving credit facility can be
expanded by $150 million, to a total size of $400 million. The company
maintains significant liquidity with nearly $230 million of debt
capacity available under its credit facilities.
“We are pleased that we were able to complete our refinancing, with
terms that reflect G&K’s improved financial performance and strong
credit profile,” said Jeffrey L. Wright, Executive Vice President and
Chief Financial Officer. “The new facility supports our strategy of
maintaining a strong balance sheet and provides the company with
significant financial flexibility to invest in our business, fund
strategic initiatives and pursue acquisitions.”
About G&K Services, Inc.
Services, Inc. is a service-focused market leader of branded uniform and
facility services programs in the United States, and is the largest such
provider in Canada. Headquartered in Minneapolis, Minnesota, G&K
Services has over 7,500 employees serving approximately 165,000
customers from over 160 facilities in North America. G&K Services is a
publicly held company traded over the NASDAQ Global Select Market under
the symbol GKSR and is a component of the Standard & Poor’s SmallCap 600
Index. For more information on G&K Services, visit the company’s web
site at www.gkservices.com.
Safe Harbor for Forward-Looking Statements
made in this press release concerning the company’s intentions,
expectations or predictions about future results or events are
“forward-looking statements” within the meaning of The Private
Securities Litigation Reform Act of 1995. These statements reflect the
company’s current expectations or beliefs, and are subject to risks and
uncertainties that could cause actual results or events to vary from
stated expectations, which could be material and adverse. You are
cautioned not to place undue reliance on these statements, and the
company undertakes no obligation to publicly update or revise any
forward-looking statements, whether as a result of new information,
future events or otherwise.
Information concerning potential factors that could affect future
financial results is included in the company’s Annual Report on Form
10-K for the fiscal year ended July 2, 2011.
Source: G&K Services, Inc.
G&K Services, Inc.
Jeff Huebschen, Director, Investor