Kforce has completed a $100 million credit facility and added two new banks to its syndicate in the process. The Tampa, Fla.-based specialty staffing firm brought on board CIT Group and PNC Bank to its Bank of America-led credit, said William Sanders, chief operating officer and cfo of Kforce. "Both knew the industry and we were impressed," Sanders said of the two new banks. Beyond receiving an improved credit agreement, Kforce was interested in finding flexible financial partners to aid the company as the staffing industry changes. "As time and opportunity warrants it, we will do other business with the new banks," Sanders also said, noting that B of A presently offers treasury services to the company. Fleet Capital continues to be a member of the syndicate, he added.
The new three-year revolver is secured by receivables. Sanders would not disclose the exact pricing on the new facility, but he said the company was pleased with an improved interest rate. He added that there were various fees included, as well as standard covenants that kick in when the company borrows beyond 85% of its receivables. The line will be in place for general corporate purposes. The credit replaces a $90 million revolver set to expire in November 2003, that was also led by B of A and priced at LIBOR plus 3%, he added. Kforce had tapped about $22 million of the previous facility. Improved performance allowed the company to get the $10 million hike in capacity on the line, Sanders noted.