ASGN Incorporated, a provider of IT services and professional solutions, including technology and creative digital marketing, across the commercial and government sectors, completed a series of transactions that upsize its revolving credit facility and term loan B, extending the maturities of each.
“We are pleased with the successful execution of our recent refinancings,” Ted Hanson, CEO of ASGN Incorporated, said. “The financial terms of this transaction, and oversubscription of both the revolving credit facility and the term loan B, reflect the strength of our business and strong free cash flow profile. With our new refinancings in place, ASGN has strengthened its liquidity and increased our financial flexibility. We remain focused on generating and delivering shareholder value as we execute on our long-term strategic plan.”
ASGN refinanced its existing $460 million, five-year revolving credit facility, with a new upsized, five-year, $500 million facility. The maturity of the facility has been extended to 2028, and borrowings are priced at the Secured Overnight Financing Rate (SOFR) plus a 10-basis point credit spread adjustment plus 200 to 300 basis points, dependent upon secured leverage levels. Borrowings under the revolving credit facility will be available for general corporate purposes. The revolving credit facility was undrawn at closing.
The company also refinanced its secured $500 million term loan B with the issuance of a new $500 million, seven-year term loan B maturing in 2030 and priced at SOFR plus 225 basis points. Proceeds are being used to pay off the $491 million outstanding on the previous term loan B and for general corporate purposes. The refinancing transactions were led by Wells Fargo Bank.
