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Administaff Closes $36 Million Mortgage
HOUSTON, Dec. 20 -- Administaff, Inc.
(NYSE: ASF), the nation's leading Professional Employer Organization
(PEO), today announced the closing and funding of a $36 million
mortgage with General Electric Capital Business Asset Funding Corporation.
As previously announced, the new financing bears interest at a variable
rate equal to the 30-day LIBOR rate (currently 1.4%) plus 2.9%,
and is subject to a floor of 4.5%. The mortgage is payable in monthly
installments of approximately $230,000 over five years, with the
remaining balance due upon maturity in January 2008. Secured by
real estate located at Administaff's headquarters in Kingwood, Texas,
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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