BofA Increases ABL to Cross Country to Support MSN Buy
Staffing solution provider Cross Country Healthcare announced it has signed a definitive agreement to acquire substantially all of the assets and business of Medical Staffing Network and assume substantially all of the liabilities of MSN for an aggregate purchase price of $48.3 million.
Cross Country Healthcare said it has a commitment from its current lender, Bank of America to increase its borrowing capacity under its senior secured asset-based revolving credit facility from $65 million to $85 million.
The company also said it has entered into commitments for subordinated debt consisting of a $30 million, 5-year variable rate term loan and $25 million of convertible notes having a 6-year maturity. The combined effective interest rate for the subordinated indebtedness is expected to be 7.72% for 2014.