The Computer Task Group entered into a three-year $45 million revolving credit facility with KeyBank as administrative agent, swing line lender and issuing lender and KeyBanc Capital Markets as lead arranger and sole book runner.

According to a related 8-K filing, the facility includes a sublimit of $10 million for letters of credit and a $10 million sublimit for swing line loans. Loans under the credit agreement bear interest at per annum rates equal to, at CTG’s option, (i) adjusted or daily LIBOR plus a spread ranging from 1.5% to 2.0% based on the amounts outstanding under the credit agreement or (ii) the greater of (1) the prime rate of KeyBank, (2 )the federal funds effective rate plus 0.50% and (3) adjusted LIBOR plus 1.0%, plus a spread ranging from 0.5% to 1.0% based on the amounts outstanding under the agreement.

Actual borrowings by CTG are subject to a borrowing base, which is a formula based on certain eligible receivables and reserves. The facility funds will be used to supply working capital and other general corporate purposes and to repay in full and terminate CTG’s previous 2015 credit agreement with KeyBank and KeyBanc Capital Markets.

All obligations under the new facility will be unconditionally guaranteed by certain of CTG’s subsidiaries and secured by a first priority lien on the assets of CTG, along with a pledge of 50% of the equity interests in the direct domestic subsidiaries of CTG and 65% of the equity interests in the direct foreign subsidiaries of CTG.

Computer Task Group is an IT solutions and staffing services company with operations in North America and Europe.