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Administaff Obtains Commitment Letter for $36 Million
in Long-Term Financing
HOUSTON, Dec. 5 -- Administaff, Inc.
(NYSE: ASF), the nation's leading Professional Employer Organization
(PEO), today announced it has secured a binding commitment letter
from General Electric Capital Business Asset Funding Corporation
for a $36 million mortgage that is expected to close later this
month. The new financing, which is contingent upon the completion
of standard documentation and customary conditions, will bear interest
at a variable rate equal to the 30-day LIBOR rate (currently 1.4%)
plus 2.9%. This variable rate is subject to a floor of 4.5%. The
mortgage will be secured by real estate located at Administaff's
headquarters in Kingwood, Texas, and will be payable in monthly
installments of approximately $230,000 over five years, with the
remaining balance due upon maturity in December 2007. The financing
will be used to repay the company's $30 million short-term revolving
line of credit, resulting in a net working capital increase of approximately
$36 million.
With 2001 revenues of $4.4 billion, Administaff
is a leading personnel management company that serves as a full-service
human resources department for small and medium-sized businesses
throughout the United States. The company currently operates 38
sales offices in 21 major markets: Atlanta, Austin, Baltimore, Boston,
Charlotte, Chicago, Cleveland, Dallas, Denver, Houston, Los Angeles,
Minneapolis/St. Paul, New Jersey, New York City, Orlando, Phoenix,
San Antonio, San Diego, San Francisco, St. Louis and Washington,
D.C.
(Note: The statements contained in this
press release that are not historical facts are forward-looking
statements that involve a number of risks and uncertainties. Therefore,
the actual results of future events described in such forward-looking
statements could differ materially from those stated in such forward-looking
statements. Among the factors that could cause actual results to
differ materially are: (i) changes in general economic conditions;
(ii) regulatory and tax developments; (iii) changes in Administaff's
direct costs and operating expenses; (iv) the estimated costs and
effectiveness of capital projects and investments in technology
and infrastructure; (v) Administaff's ability to effectively implement
its eBusiness strategy; (vi) the effectiveness of Administaff's
sales and marketing efforts, including the company's marketing arrangements
with other companies; and (vii) changes in the competitive environment
in the Professional Employer Organization industry. These factors
are described in further detail in Administaff's filings with the
Securities and Exchange Commission.)
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