COMFORCE Corporation Announces Extension of Revolving Credit Facility
03 Noviembre 2009 - 10:31AM
PR Newswire (US)
WOODBURY, N.Y., Nov. 3 /PRNewswire-FirstCall/ -- COMFORCE
Corporation (NYSE Amex: CFS), a leading provider of outsourced
staffing management services, specialty staffing and consulting
services today announced that COMFORCE Operating, Inc., along with
its key operating subsidiaries, has entered into an amendment of
its revolving credit facility to extend the maturity date from July
2010 to November 2012. PNC Bank is the administrative agent under
this facility. This credit facility continues to provide for a
revolving line of credit with available borrowings based,
generally, on 87.0% of our eligible accounts receivable. At the
Company's request, the maximum availability under the facility was
reduced from $110.0 million to $95.0 million. Reflective of current
credit markets, the interest rate under the facility was increased,
and we expect our cost of borrowings under the facility to increase
by about 200 to 250 basis points. We primarily borrow based upon
LIBOR and our euro loans will be 275 basis points over LIBOR with a
150 basis point LIBOR floor. In addition, our letter of credit fees
increased from 125 basis points to 200 basis points and our unused
line fees increased from 25 basis points to 37.5 basis points.
Comments from Management John Fanning, Chairman and CEO of COMFORCE
commented, "We appreciate that PNC and the other participating
lenders gave us a vote of confidence by extending our credit
facility in a very bad economy and equally tight lending market.
While we are now paying higher interest than previously, we think
our loan terms are very favorable, particularly in this economic
environment." Mr. Fanning continued, "The confidence our bankers
have shown in our management team validates our business plan and
financial discipline. I commend our management team for their
performance and efforts in obtaining an extension of our credit
facility on these terms." About COMFORCE COMFORCE Corporation is a
leading provider of outsourced staffing management services that
enable Fortune 1000 companies and other large employers to
consolidate, automate and manage staffing, compliance and oversight
processes for their contingent workforces. We also provide
specialty staffing, consulting and other outsourcing services to
Fortune 1000 companies and other large employers for their
healthcare support, technical and engineering, information
technology, telecommunications and other staffing needs. We operate
in three segments -- Human Capital Management Services, Staff
Augmentation and Financial Outsourcing Services. The Human Capital
Management Services segment provides consulting services for
managing the contingent workforce through its PrO® Unlimited
subsidiary. The Staff Augmentation segment provides Healthcare
Support Services, including RightSourcing® Vendor Management
Services, Technical, Information Technology and Other Staffing
Services. The Financial Outsourcing Services segment provides
funding and back office support services to independent consulting
and staffing companies. To view the Company's web page visit
http://www.comforce.com/. We have made statements in this release,
including the comments from management that are forward-looking
statements such as projections of our future financial performance,
our anticipated growth strategies and anticipated trends in our
business and industry. These statements are only predictions based
on our current expectations and projections about future events.
Although we believe the expectations reflected in the
forward-looking statements are reasonable, we cannot guarantee our
future results, particularly in light of the current global
economic crisis that has been marked by dramatic and rapid shifts
in market conditions and government responses, nor will we
undertake any obligation to update any of these statements. Factors
which may cause our actual results to differ materially from those
expressed or implied by the forward-looking statements include the
following: -- unfavorable global, national or local economic
conditions that cause our clients to defer hiring contingent
workers or reduce spending on the human capital management services
and staffing that we provide; -- the current economic crisis has
created a tightening of the credit markets coupled with increasing
interest rates, which, if these conditions persist or deteriorate,
could significantly increase our interest expense; -- in the
current economic climate, some state taxing authorities are more
strictly interpreting business tax laws and regulations and more
aggressively seeking to enforce these laws and regulations to
address shortfalls in state tax revenues; -- increases in the
effective rates of any payroll-related costs or business taxes that
we are unable to pass on to or recover from our clients,
particularly in a climate of heightened competitive pressure; --
increases in the costs of complying with the complex federal, state
and foreign laws and regulations in which we operate, or our
inability to comply with these laws and regulations; -- our
inability to collect fees due to the bankruptcy of our clients,
including the amount of any wages we have paid to our employees for
work performed for these clients; -- our inability to keep pace
with rapid changes in technology in our industry; -- potential
losses relating to the placement of our employees in other
workplaces, including our employees' misuse of client proprietary
information, misappropriation of funds, discrimination, harassment,
theft of property, accidents, torts or other claims; -- our
inability to successfully develop new services or enhance our
existing services as the markets in which we compete grow more
competitive; -- unfavorable developments in our business may result
in the necessity of writing off goodwill in future periods; -- as a
result of covenants and restrictions in our credit facility, our
inability to use available cash in the manner we believe will
maximize stockholder value; -- unfavorable press or analysts'
reports concerning our industry or our company could negatively
affect the perception investors have of our company and our
prospects; or -- any of the other factors described under "Risk
Factors" in Item 1A of our annual report on Form 10-K for the year
ended December 28, 2008 (copies of which may be accessed through
http://www.sec.gov/ or http://www.comforce.com/). DATASOURCE:
COMFORCE Corporation CONTACT: Bob Ende, Senior Vice President -
Finance, COMFORCE Corporation, +1-516-437-3300, ; or at Financial
Relations Board, General Info: Marilynn Meek, +1-212-827-3773 Web
Site: http://www.comforce.com/
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