HOUSTON, August 1 /PRNewswire/ -- CORESTAFF, Inc. (Nasdaq: CSTF), one of
the largest national providers of information technology services and staffing
services, announced today it has amended its senior credit facility to
increase the commitment from $250 million to $350 million. The amended five-
year credit agreement is with a syndicate of 18 banks, led by First Union
National Bank. The amended credit agreement is on more favorable terms to the
company and provides it with the capital and financial flexibility to continue
its selective acquisition program and support internal growth.
Under terms of the amended facility, CORESTAFF may borrow up to the lesser
of $350 million or 4.0 times pro forma adjusted EBITDA (earnings before
interest, income taxes, depreciation and amortization of goodwill associated
with acquisitions) for the preceding 12 months. The company may request an
increase in the commitment to $400 million. The credit facility also provides
that, after the completion of CORESTAFF's previously announced offering of
convertible subordinated notes, the company's total permitted debt capacity
will be raised to 4.25 times pro forma adjusted EBITDA.
Established in 1993, CORESTAFF, Inc. is one of the largest national
providers of information technology (IT) services and staffing services
through its two business groups: the IT Services Group, which is comprised of
COMSYS Information Technology Services and the IT Solutions unit, and the
Staffing Services Group, which operates under the name CORESTAFF Services.
The company, with pro forma revenues in excess of $925 million, operates 148
branches in 28 states, the District of Columbia, the United Kingdom and India.
SOURCE CORESTAFF, Inc.
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