Company: KELYB
Filing Date: 2025-11-06
Form Type: 10-Q
Source: 0000055135-25-000080
Chunk: 20

Company: KELLY SERVICES INC
Filing Date: 2025-11-06
Form: 10-Q
Item: Part I, Item 1
Chunk 20
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 The Facility is available to be used to fund working capital, acquisitions and general corporate needs.  The Facility is secured by certain assets of the Company, excluding U.S. trade accounts receivable.At the end of the third quarter of 2025, there were no long-term borrowings under the Facility and a remaining borrowing capacity of $150.0 million.  The rates for the Facility, which vary based on the Company's leverage ratio as defined in the agreement, include either (i) the Prime rate plus the applicable margin for the floating line or (ii) a term SOFR for 1-, 3-, or 6-months dependent on the interest election plus a 0.10% margin and the applicable margin for the term benchmark line.  At year-end 2024, there were $40.0 million of long-term borrowings on the term benchmark line under the Facility and a remaining borrowing capacity of $110.0 million.  To maintain availability of the funds, the Company pays a facility fee on the full amount of the Facility, regardless of usage.  The facility fee varies based on the Company’s leverage ratio as defined in the agreement.  The Facility, which contains a cross-default clause that could result in termination if defaults occur under the Company's other loan agreements, had a facility fee of 15.0 basis points at the end of the third quarter of 2025 and 20.0 basis points at year-end 2024.  The Facility’s financial covenants and restrictions are described below, all of which were met at the end of the third quarter of 2025:•The Company must maintain a certain minimum interest coverage ratio of earnings before interest, taxes, depreciation, amortization (“EBITDA”) and certain cash and non-cash charges that are non-recurring in nature to interest expense as of the end of any fiscal quarter.•The Company must maintain a certain maximum ratio of total indebtedness to the sum of net worth and total indebtedness at all times.•Dividends, stock buybacks and similar transactions are limited to certain maximum amounts.•The Company must adhere to other operating restrictions relating to the conduct of business, such as certain limitations on asset sales and the type and scope of investments. Securitization FacilityThe Company has a Receivables Purchase Agreement with Kelly Receivables Funding, LLC, a wholly owned bankruptcy remote special purpose subsidiary of the Company (the “Receivables Entity”), related to its $250.0 million,