HireRight Upsizes Revolving Credit Facility to $145 Million

Rhea-AI Summary

HireRight Holdings (NYSE: HRT) has successfully amended and upsized its revolving credit facility, raising the committed line to $145 million as of June 3, 2022. This move aims to enhance its growth strategy and extend the facility's maturity to April 1, 2027. Key banking partners, including Goldman Sachs and Bank of America, contributed to this expansion, which now employs interest rates linked to the Secured Overnight Financing Rate (SOFR). This strategic adjustment reflects solid backing from financial institutions and positions HireRight for future growth.

Positive

• Increased revolving credit facility to $145 million.
• Extended maturity date to April 1, 2027, enhancing liquidity.
• Backing from major financial institutions like Goldman Sachs and Bank of America.

Negative

• None.

NASHVILLE, Tenn.--(BUSINESS WIRE)-- HireRight Holdings (NYSE: HRT), amended and upsized its revolving credit facility (the “Revolving Facility”), increasing the committed line under the Revolving Facility to $145 million, effective June 3, 2022.

“We have meaningfully extended the facility’s maturity and provided incremental capital to strengthen our disciplined strategy for growth,” stated Tom Spaeth, Chief Financial Officer. “The expansion of our Revolving Facility is a testament to our banking partners and their continued confidence and support of HRT.”

As part of the expanded Revolving Facility, Goldman Sachs, Royal Bank of Canada, and Barclays joined the syndication. The syndication is led by Bank of America as administrative agent.

Interest rates on the amended Revolving Facility were changed to the Secured Overnight Financing Rate (“SOFR”), plus an amount between 250 bps and 300 bps, depending on HRT’s First Lien Leverage Ratio. The maturity date of the Revolving Facility was extended to April 1, 2027 or, if earlier, the date 91 days prior to the stated maturity date of HRT’s First Lien Senior Secured Term Loan, which is currently July 12, 2025.

About HireRight
HireRight is a leading global provider of technology-driven workforce risk management and compliance solutions. We provide comprehensive background screening, verification, identification, monitoring, and drug and health screening services for more than 40,000 customers across the globe. HireRight offers services via a unified global software and data platform that tightly integrates into its customers' human capital management systems enabling highly effective and efficient workflows for workforce hiring, onboarding, and monitoring. In 2021, HireRight screened over 29 million job applicants, employees and contractors for its customers and processed over 110 million screens. For more information, visit www.HireRight.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20220607006267/en/

Investors:

Investor.Relations@HireRight.com

Andrew Hay

Vice President of Treasury and Investor Relations

(865) 360-4314

Andrew.Hay@hireright.com

Media:

Monica Soladay

Media.Relations@HireRight.com

Source: HireRight Holdings

FAQ

What is the significance of HireRight's amended revolving credit facility?

The amendment allows HireRight to access $145 million in funding, enhancing its financial flexibility and growth potential.

Who are the major banks involved in HireRight's expanded Revolving Facility?

Goldman Sachs, Royal Bank of Canada, and Barclays are part of the syndication, led by Bank of America.

What are the new interest rates for HireRight's Revolving Facility?

The interest rates are based on the Secured Overnight Financing Rate (SOFR), with an additional 250 to 300 basis points depending on HireRight's leverage ratio.

How long is the maturity of HireRight's updated credit facility?

The maturity date has been extended to April 1, 2027.

What does HireRight do?

HireRight is a global provider of workforce risk management solutions, specializing in background checks, verification, and compliance services.