MINNEAPOLIS — G&K Services Inc. recently completed a $300 million, three-year revolving credit facility, scheduled to mature in July 2012, replacing the company’s previous credit facility that was scheduled to mature in August 2010.
At closing, G&K Services expects to draw down approximately 50% of this credit facility, which is similar to the borrowing level under the previous credit facility. This provides the company with more than $150 million of available liquidity.
“Our objective in pursuing the new credit facility was to retain a strong level of financial flexibility in this tough economic environment and position G&K to capture future growth opportunities as the economy recovers,” says Jeffrey Wright, executive vice president and chief financial officer. “Executing this credit facility at market-favorable terms during very difficult economic conditions and uncertain credit markets reflects our excellent cash flow, solid business model, strong management team and conservative credit profile. This new credit facility provides substantial liquidity and additional financial flexibility and reflects the strong relationships we have with our banking partners.”