SunTrust Agents New Facilities for AMN Healthcare
AMN Healthcare Services announced that it has refinanced its existing credit facilities. The new credit facilities consist of a $150 million secured term loan and $225 million secured revolving line of credit.
According to a related 8-K filing, SunTrust acted as administrative agent for the lender group. The secured revolver included a $40 million sublimit for the issuance of standby letters of credit and a $20 million sublimit for swingline loans. In addition, the agreement provides that the borrower may from time to time obtain an increase in the revolver or the term loan or both in an aggregate principal amount not to exceed $125 million subject to certain conditions.
Based on the company’s leverage ratio at the closing, the company’s interest rate effective April 24, 2014 will be LIBOR plus 175 basis points. The credit facilities mature in April 2019.
“Our new credit agreement significantly reduces our average cost of debt by over 100 basis points and provides flexibility to pursue opportunistic investments in strategic healthcare workforce solutions,” said Brian M. Scott, chief financial officer of AMN Healthcare. “We believe the combination of a favorable financing market, AMN’s financial performance and a positive long-term industry outlook made this the appropriate time to refinance our credit facilities.”
San Diego, CA-based AMN Healthcare is a provider of healthcare workforce solutions and staffing services to healthcare facilities across the U.S.