Korn Ferry Completes $400M Note Redemption, Secures $600M Term Loan for AMS Acquisition
KFY sits 43% above its 52-week low of $58.95.
Summary
Korn Ferry completed the redemption of its $400 million senior notes and entered into a new $1.45 billion credit agreement, including a $600 million term loan, to fund the AMS acquisition.
Key Events · Financing and Capital Events · KFY
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New $1.45B Credit Agreement
Korn Ferry entered into an amended and restated credit agreement providing a $600 million senior secured term loan facility and continuing its existing $850 million revolving credit facility, with maturity extended to five years from August 18, 2026.
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$400M Note Redemption Completed
The company redeemed all $400 million of its 4.625% Senior Notes due 2027 at 100% of principal plus accrued interest, funded by the new term loan. The indenture has been satisfied and discharged.
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Proceeds Fund AMS Acquisition
The term loan was fully drawn on the effective date. Proceeds were used to fund the redemption and will finance a portion of the $1.1 billion AMS acquisition, expected to close September 1, 2026.
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Interest Rate and Security
Borrowings bear interest at Term SOFR plus a margin of 1.125% to 2.00% (or base rate plus 0.125% to 1.00%), depending on the company's consolidated net leverage ratio. Obligations are secured by substantially all assets of the company and guarantor subsidiaries.
Analysis · KFY · Trade & Services
Korn Ferry has finalized its refinancing plan, replacing its $400 million senior notes with a new $600 million term loan and extending its revolving credit facility. The new debt is secured by substantially all assets and carries a floating rate based on SOFR plus a margin tied to leverage. This move provides the company with additional liquidity to fund its pending $1.1 billion acquisition of AMS, expected to close September 1, 2026. The transaction increases total debt capacity and extends maturities, but also adds interest expense and collateral obligations.
At the time of this filing, KFY was trading at $84.40 on NYSE in the Trade & Services sector, with a market capitalization of approximately $4.3B. The 52-week trading range was $58.95 to $85.97. This filing was assessed with neutral market sentiment and an importance score of 7 out of 10.