Company: KELYB
Filing Date: 2025-05-08
Form Type: 10-Q
Source: 0000055135-25-000016
Chunk: 103

Company: KELLY SERVICES INC
Filing Date: 2025-05-08
Form: 10-Q
Item: Part I, Item 2
Chunk 103
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 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.  As of first quarter-end 2025, the fair value of the earnout remained at zero, and no liability is recorded.  See the Acquisitions and Disposition footnote in the notes to our consolidated financial statements for more details.

As of first quarter-end 2025, we had $120.0 million of available capacity on our $150.0 million revolving credit facility and $32.8 million of available capacity on our $250.0 million securitization facility.  The revolving credit facility carried $30.0 million of long-term borrowings on the term benchmark line of credit.  The securitization facility carried $174.6 million of long-term borrowings and $42.6 million of standby letters of credit related to workers’ compensation.  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.  As of first quarter-end 2025, we recorded a liability totaling $0.3 million related to the mark-to-market fair value change of the interest rate swaps.  See the Fair Value Measurements footnote and the Debt footnote in the notes to our consolidated financial statements for more details.

Together, the revolving credit and securitization facilities provide us with committed funding capacity that may be used for general corporate purposes subject to financial covenants and restrictions.  We believe our cash flow from operations, the availability of liquidity under our credit facilities, including the accordion feature which allows us to increase our borrowing 

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capacity and our ability to access capital from financial markets will be sufficient to meet our anticipated cash requirements, while maintaining sufficient liquidity for normal operating purposes.  As of first quarter-end 2025, we met the debt covenants related to our revolving credit facility and securitization facility.

As of first quarter-end of 2025, we had additional unsecured, uncommitted short-term local credit facilities totaling $3.