Labor Ready signed a five year, $100 million accounts receivable securitization program to provide working capital and letters of credit for operational needs. It replaces a $60 million bank facility due to expire this year. "For the new deal borrowing is securitized by accounts receivable, versus being collaterized," said Steve Cooper, cfo. He said the program provides the company with greater access to funding and letters of credit at a lower cost. Labor Ready, based in Tacoma, Wash., provides temporary manual labor in the industrial and small business markets. It operates 832 dispatch offices in 50 states, Canada, Puerto Rico and the United Kingdom.
Cooper says General Electric Capital Corp. is the sole lender and offered the best pricing and terms. "We're excited to be working with a leader in the financial services industry," he said. U.S. Bank led the former facility which was a two-year deal set to expire in June. It bid for the new deal as well. Cooper said 80% of the $100 million can be used in a letter of credit program. Pricing is tied to the commercial paper rate, but Cooper declined to elaborate.