Company: KELYB
Filing Date: 2025-11-06
Form Type: 10-Q
Source: 0000055135-25-000080
Chunk: 46

Company: KELLY SERVICES INC
Filing Date: 2025-11-06
Form: 10-Q
Item: Part I, Item 1
Chunk 46
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atriated to optimize our overall capital structure.  As of the end of the third quarter of 2025, these reviews have not resulted in specific plans to repatriate a majority of our international cash balances.  Following the sale of our EMEA staffing operations completed in the first quarter of 2024, discussed below, we continue to provide MSP, RPO and Functional Service Provider solutions in the EMEA region.  Therefore, we expect much of our remaining international cash will be needed to fund working capital growth in our local operations. 

As of third quarter-end 2025, we had $150.0 million of available capacity on our $150.0 million revolving credit facility and $89.0 million of available capacity on our $250.0 million securitization facility.  The revolving credit facility carried no long-term borrowings on the floating or term benchmark lines of credit.  The securitization facility carried $118.4 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.

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 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 third quarter-end 2025, we met the debt covenants related to our revolving credit facility and securitization facility.

As of third quarter-end of 2025, we had additional unsecured, uncommitted short-term local credit facilities totaling $3.1 million, under which we had no borrowings.  Details of our debt facilities are contained in the Debt footnote in the notes to our consolidated financial statements.

We monitor the credit ratings of our banking partners on a regular basis and have regular discussions with them.  Based on our reviews and communications, we believe the risk of one or more of our banks not being able to honor commitments is insignificant.  We also review the ratings and holdings of our money market funds and other investment vehicles regularly to ensure high credit quality and access to our invested cash.

Forward-Looking Statements

Certain statements contained