NU Online News Service, Dec. 4, 2003, 11:37 a.m. EST – Clark Consulting Inc., Barrington, Ill., says its lenders have agreed to extend its senior credit facility to Dec. 31, 2006.[@@]
The executive benefits and compensation consulting firm has $51 million in debt outstanding on the credit facility, which was set to expire Dec. 31.
Clark can borrow up to $80 million through the new facility. The company might be able to increase the limit to $105 million by securing additional bank commitments.
The facility consists of a revolving credit line, which resembles the corporate equivalent of a variable-rate credit card. Clark can choose between paying an interest rate based on the U.S. prime interest rate or Europe’s London InterBank Offered Rate.
The spreads over the benchmark rate will depend on Clark’s debt load. The spreads could range from 1.625 percentage points to 2.75 percentage points over LIBOR or 0 percentage points to 0.50 percentage points over the prime rate.
Bank One Corp., Chicago, leads the credit facility syndicate.