G&K Services Announces Refinancing of Revolving Credit Facility

G&K Services, Inc.

today announced the successful refinancing of its unsecured revolving credit facility. The new five-year, $250 million revolving credit facility replaces the company's existing revolving credit facility, which was scheduled to expire on July 1, 2012. The prior credit facility had borrowings of $30 million at the closing of refinancing. The new credit facility was provided by a syndicate of financial institutions and arranged by J.P. Morgan, Wells Fargo, and Bank of America Merrill Lynch. The new facility, which will mature on March 7, 2017, bears interest between 1.0% to 2.0% over LIBOR, depending on the company's leverage ratio. As of closing, the company's borrowing rate will be reduced by one hundred basis points compared to the current rate under the previous facility. The revolving credit facility can be expanded by $150 million, to a total size of $400 million. The company maintains significant liquidity with nearly $230 million of debt capacity available under its credit facilities.