Barrett Business Services, the Vancouver-based provider of employment services, said Monday it has secured loans from Wells Fargo to address increases in its workers’ compensation reserves.
The loans obtained by Barrett from Wells Fargo, the company’s principal bank, include a $40 million, two-year term loan, as well as a $14 million revolving line of credit.
Barrett plans to use a combination of cash on hand and proceeds from the term loan to address its workers’ compensation reserve funding requirements by no later than Dec. 31, the company said in a news release.
Barrett’s agreement with Wells Fargo also provides an increase of up to a total of $117.9 million in cash-secured letters of credit to meet collateral requirements linked to workers’ compensation expenses.
“This addresses our short-term liquidity needs at a favorable interest rate and allows (Barrett) to focus on running the business while supporting and growing our client base,” Michael Elich, the company’s CEO, said in the news release.
