G&K Services raises gross proceeds of $75mn senior notes due June 30
08 Jul '05
2 min read
Leading branded identity apparel programmer & marketer G&K Services Inc announced it has lifted gross proceeds of $75 million through the private placement of senior notes ("Notes") due June 30, 2015.
"They continue to execute transactions to further enhance G&K's capital structure to support the company's strategic vision," said Jeffrey Wright, G&K's senior vice president and chief financial officer. "The placement of the senior notes provides additional capital resources to pursue organic revenue growth initiatives in addition to funding strategic acquisitions."
The Notes are unsecured floating rate private placement notes that include financial covenants and other customary terms and conditions. There are no principal payments due on the Notes until maturity in 2015.
The proceeds of the Notes will be used to repay outstanding debt under the company's revolving credit facility. The securities offered have not been registered under the Securities Act of 1933 and may not be offered or sold in the United States, absent registration or an applicable exemption from registration requirements.
"Our capital structure objectives center on capital availability, flexibility in terms and conditions, maintaining an appropriate debt maturity schedule and minimizing our cost of capital," said Glenn Stolt, G&K's vice president and treasurer.
"The issuance of these notes supports each of our objectives. Further, this private placement of seniornotes combined with the asset securitization program we completed last December and other outstanding debt arrangements diversifies our sources of capital at a lower effective cost of debt."
G&K Services Inc located in Minneapolis, Minnesota. The company is a market leader in branded identity apparel programs and facility services in the United States, and is the largest such provider in Canada. G&K operates over 140 processing facilities and branch offices, serving more than 160,000 customers.
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