Company: KELYB
Filing Date: 2025-08-07
Form Type: 10-Q
Source: 0000055135-25-000052
Chunk: 45

Company: KELLY SERVICES INC
Filing Date: 2025-08-07
Form: 10-Q
Item: Part I, Item 1
Chunk 45
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.6 million or $77.1 million net of cash disposed.  In the second quarter of 2025, we received proceeds of $21.8 million from Gi in connection with the previously recorded receivable, which was fully settled as of the second quarter-end 2025.  We will not receive any proceeds from the contingent consideration opportunity associated with the transaction.  See the Acquisitions and Disposition footnote in the notes to our consolidated financial statements for more details.

On May 31, 2024, we indirectly acquired 100% of the equity interests in MRP for a purchase price of $425.0 million. Under terms of the agreement, the purchase price was adjusted for estimated cash held by MRP at the closing date and estimated working capital adjustments, resulting in us paying cash of $440.0 million, funded with cash on hand and available credit facilities.  Per the terms of the agreement, there was an earnout with a maximum potential cash payment of $60.0 million due to the seller in the second quarter of 2025.  The earnout period concluded in the first quarter of 2025 and no further liability will be recognized.  See the Acquisitions and Disposition footnote in the notes to our consolidated financial statements for more details.

As of second quarter-end 2025, we had $130.0 million of available capacity on our $150.0 million revolving credit facility and $153.1 million of available capacity on our $250.0 million securitization facility.  The revolving credit facility carried $20.0 million of long-term borrowings on the term benchmark line of credit.  The securitization facility carried $54.3 million of long-term borrowings and $42.6 million of standby letters of credit related to workers’ compensation.  The credit facilities also include an accordion feature to increase our combined borrowing capacity by $250.0 million.  On July 17, 2024, we entered into interest rate swaps that effectively locked in the variable Secured Overnight Financing Rate (“SOFR”) component of our interest rate for a portion of the long-term borrowings on the Securitization Facility.  The 12-month interest rate swap was settled early with the final payment made in June 2025.  As of second quarter-end 2025, we recorded a liability totaling $0.1 million related to the mark-to-market fair value change of the interest rate swaps.  See the