G & K (NASDAQ:GKSRA)
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G&K Services, Inc. (Nasdaq:GKSRA), a market leader in
branded identity apparel programs and facility services, today
announced it has raised gross proceeds of $75 million through the
private placement of senior notes ("Notes") due June 30, 2015.
"We continue to execute transactions to further enhance G&K's
capital structure to support the company's strategic vision," said
Jeffrey Wright, G&K's senior vice president and chief financial
officer. "The placement of the senior notes provides additional
capital resources to pursue organic revenue growth initiatives in
addition to funding strategic acquisitions."
The Notes are unsecured floating rate private placement notes that
include financial covenants and other customary terms and conditions.
There are no principal payments due on the Notes until maturity in
2015. The proceeds of the Notes will be used to repay outstanding debt
under the company's revolving credit facility. The securities offered
have not been registered under the Securities Act of 1933 and may not
be offered or sold in the United States, absent registration or an
applicable exemption from registration requirements.
"Our capital structure objectives center on capital availability,
flexibility in terms and conditions, maintaining an appropriate debt
maturity schedule and minimizing our cost of capital," said Glenn
Stolt, G&K's vice president and treasurer. "The issuance of these
notes supports each of our objectives. Further, this private placement
of senior notes combined with the asset securitization program we
completed last December and other outstanding debt arrangements
diversifies our sources of capital at a lower effective cost of debt."
Safe Harbor for Forward-Looking Statements
The Private Securities Litigation Reform Act of 1995 (the "Act")
provides companies with a "safe harbor" when making forward-looking
statements as a way of encouraging them to furnish their shareholders
with information regarding expected trends in their operating results,
anticipated business developments and other prospective information.
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 Act. 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. Given that circumstances may change, and new risks to the
business may emerge from time to time, having the potential to
negatively impact our business in ways we could not anticipate at the
time of making a forward-looking statement, 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.
Some of the factors that could cause actual results or events to
vary from stated expectations include, but are not limited to, the
following: unforeseen operating risks; the effects of overall economic
conditions and employment; fluctuations in costs of insurance and
energy; acquisition integration costs; the performance of acquired
businesses; preservation of positive labor relationships; competition,
including pricing, within the corporate identity apparel and facility
services industry; and the availability of capital to finance planned
growth. Additional 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 July 3, 2004.
About G&K Services, Inc.
Headquartered in Minneapolis, Minnesota, 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. G&K operates over 140 processing facilities and branch
offices, serving more than 160,000 customers.