New Facility Maintains Strong Liquidity and Increases Financial
Flexibility
G&K Services, Inc. (NASDAQ: GKSR) has completed a $300
million, three-year revolving credit facility. The new facility, which
will mature in July 2012, replaces the company’s previous credit
facility which was scheduled to mature in August 2010. At closing, the
company expects to draw down approximately fifty percent of this credit
facility, which is consistent with the borrowing level under the
previous credit facility and provides over $150 million of available
liquidity.
“Our objective in pursuing the new credit facility was to retain a
strong level of financial flexibility in this tough economic environment
and position G&K to capture future growth opportunities as the economy
recovers,” said Jeffrey Wright, executive vice president and chief
financial officer. “Executing this credit facility at market favorable
terms during very difficult economic conditions and uncertain credit
markets reflects our excellent cash flow, solid business model, strong
management team and conservative credit profile. This new credit
facility provides substantial liquidity and additional financial
flexibility and reflects the strong relationships we have with our
banking partners.”
A copy of the Credit Agreement has been filed under Form 8-K.
Safe Harbor for Forward-Looking
Statements
Statements made in this press release concerning our intentions,
expectations or predictions about future results or events are
“forward-looking statements” within the meaning of The Private
Securities Litigation Reform Act of 1995. These statements reflect our
current expectations or beliefs, and are subject to risks and
uncertainties that could cause actual results or events to vary from
stated expectations, which could be material and adverse. You are
cautioned not to place undue reliance on these statements, and we
undertake no obligation to publicly update or revise any forward-looking
statements, whether as a result of new information, future events or
otherwise.
Information concerning potential factors that could affect future
financial results is included in our Annual Report on Form 10-K for the
fiscal year ended June 28, 2008.
About G&K Services, Inc.
G&K Services, Inc. is a market leader in branded identity apparel
programs and facility services in the United States, and is the largest
such provider in Canada. Headquartered in Minneapolis, Minnesota, G&K
Services has approximately 9,000 employees serving more than 175,000
customers from over 170 facilities in North America and Europe. G&K
Services is a publicly held company traded over the NASDAQ Global Select
Market under the symbol GKSR and is a component of the Standard & Poor’s
SmallCap 600 Index. For more information on G&K Services, visit the
company’s website at www.gkservices.com.
G&K Services, Inc.
At the Company:
Jeffrey
L. Wright, 952-912-5500
Executive Vice President and Chief
Financial Officer
or
Shayn R. Carlson, 952-912-5500
Director
of Investor Relations