The facility is priced on a grid tied to leverage and the spread ranges from LIBOR plus 1 1/2-2 1/4%. This is approximately 25 basis points lower than the previous revolver. In addition to the improved interest rate, the new facility has other advantages. "We removed any limitations on our borrowing that were subject to borrowing base calculations," Grove said. "We have dramatically improved the company's flexibility to conduct acquisitions, potential share repurchases and other activities."
The revolver also has an accordion feature so the company can increase it to $125 million, but CBIZ does not currently have plans to exercise the option. "It's just simply a feature that if we were to need it we have a structure in place to address it," Grove said. Bank of America, the incumbent, leads the new facility. "Bank of America has been very supportive of CBIZ and our financing needs and we have a nice broad relationship with multiple services with Bank of America," Grove explained. There are a total of five banks on the credit, including B of A. Grove declined to name the other banks.