Clark Consulting , an Illinois-based firm that provides benefits, compensation and funding services to corporations, banks and health care organizations, has completed a new three-year, $80 million facility. The loan is initially a revolver, but up to $50 million of the facility will automatically convert to a term loan at the end of the calendar year and will then amortize over a five-year period. The facility is extremely flexible, competitively priced and allows the company to continue with its growth strategy, according to Jim Radosevich , Clark's v.p. of corporate finance. Bank One has the lead spot on the new line and also led the previous facility.
Clark's previous facility was set to expire at the end of year. "The facility had been an important part of our financing structure and growth strategy," Radosevich said. "With the termination of the old facility, we wanted to continue the same type of structure going forward." Radosevich said the company has an ongoing relationship with Bank One. "They understand our business very well," he said. LaSalle National Bank , Frost National Bank and MB Financial Bank have all re-upped as well.
In addition, the loan has an accordion feature and can expand to $105 million through additional bank commitments. The company is close to finalizing at least one additional commitment, Radosevich said. He declined to comment on the bank. The facility is priced on a grid tied to leverage. The company can opt for a LIBOR plus 1 5 / 8 -2 3 / 4 % spread or 0-1/2% over the prime rate. The pricing is the same as on the old facility, he added.