Hudson Highland Group Announces New $40 Million Revolving Credit Facility
August 06 2010 - 7:00AM
Hudson Highland Group, Inc. (Nasdaq:HHGP), one of the world's
leading providers of permanent recruitment, contract professionals
and talent management solutions, today announced the signing of a
new $40 million revolving credit facility with RBS Business
Capital.
The company ended the second quarter of 2010 with $37.9 million
in cash, an increase from $24.1 million in cash at the end of the
first quarter, including the proceeds of the equity offering
completed in early April. The company had $12.8 million in
borrowings under its existing credit facilities at June 30.
Subsequent to quarter end, the company made certain changes to its
credit facilities. On August 3, it completed a
new (Aus)$15 million ($13.7 million at current exchange
rates) financing agreement in Australia with Commonwealth Bank of
Australia (CBA), on more favorable terms than existed in the past.
Yesterday, the company entered into a revolving loan agreement with
RBS Business Capital. This RBS facility is expected to close
no later than August 25. The company expects to have $24.4
million of availability through the combination of the RBS and the
CBA facilities based on current levels of accounts receivable and
borrowings. This represents an increase of $9.2 million in
availability. The other existing local facilities will remain
in place, which presently provide an additional $3.8 million of
availability.
"We consider the arrangements with RBS and CBA to be a
significant improvement in our capital structure. They
complete our work over the last several quarters to strengthen our
capital foundation for growth and liquidity," said Mary Jane
Raymond, Hudson Highland Group's chief financial officer.
About Hudson Highland Group
Hudson Highland Group, Inc. is a leading provider of permanent
recruitment, contract professionals and talent management services
worldwide. From single placements to total outsourced
solutions, Hudson helps clients achieve greater organizational
performance by assessing, recruiting, developing and engaging the
best and brightest people for their businesses. The company
employs more than 2,000 professionals serving clients and
candidates in approximately 20 countries. More information is
available at www.hudson.com.
Safe Harbor Statement
This press release contains statements that the company believes
to be "forward-looking statements" within the meaning of the
Private Securities Litigation Reform Act of 1995. All statements
other than statements of historical fact included in this press
release, including statements regarding the company's future
financial condition, results of operations, business operations and
business prospects, are forward-looking statements. Words such as
"anticipate," "estimate," "expect," "project," "intend," "plan,"
"predict," "believe" and similar words, expressions and variations
of these words and expressions are intended to identify
forward-looking statements. All forward-looking statements are
subject to important factors, risks, uncertainties and assumptions,
including industry and economic conditions' that could cause actual
results to differ materially from those described in the
forward-looking statements. Such factors, risks, uncertainties and
assumptions include, but are not limited to, global economic
fluctuations; the ability of clients to terminate their
relationship with the company at any time; risks in collecting
the company's accounts receivable; the company's history of
negative cash flows and operating losses may continue; the
company's limited borrowing availability under its credit facility,
which may negatively impact its liquidity; restrictions on the
company's operating flexibility due to the terms of its credit
facility; risks related to fluctuations in the company's operating
results from quarter to quarter; risks related to international
operations, including foreign currency fluctuations; risks
associated with the company's investment strategy; risks and
financial impact associated with dispositions of underperforming
assets; implementation of the company's cost reduction
initiatives effectively; the company's heavy reliance on
information systems and the impact of potentially losing or failing
to develop technology; competition in the company's
markets; the company's exposure to employment-related claims
from both clients and employers and limits on related insurance
coverage; the company's dependence on key management
personnel; the company's ability to attract and retain highly
skilled professionals; volatility of the company's stock
price; the impact of government regulations;
and restrictions imposed by blocking arrangements. Additional
information concerning these and other factors is contained in the
company's filings with the Securities and Exchange Commission.
These forward-looking statements speak only as of the date of this
document. The company assumes no obligation, and expressly
disclaims any obligation, to update any forward-looking statements,
whether as a result of new information, future events or otherwise.
CONTACT: Hudson Highland Group
David F. Kirby
212-351-7216
david.kirby@hudson.com
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