SunTrust Bank Agents AMN Healthcare Facility Amendment
AMN Healthcare Services announced that the amendment of its credit agreement went into effect. Under the terms of the amendment, with SunTrust Bank as administrative agent, the interest rate on the term loan was reduced to a floating rate upon either a LIBOR (with a floor of 0.75%) or a base rate option selected by the Company, plus a spread of 3% and 2%, respectively. The interest rate under the revolving line of credit was also reduced. As of March 31, 2013, the revolver and term loan had outstanding balances of $1 million and $158 million, respectively.
“Our amended credit agreement reduces our term loan interest rate by 200 basis points, which provides a meaningful reduction in our cost of borrowing,” said Brian M. Scott, chief financial officer of AMN Healthcare. “The agreement also provides increased flexibility in terms of our maximum leverage ratio. We saw an opportunity to amend our agreement given the combined factors of a favorable credit market, AMN’s strong financial performance and improved credit profile, and a positive industry outlook. For the foreseeable future, we intend to continue utilizing our free cash flow to reduce our long-term debt balance.”
AMN Healthcare provides healthcare workforce solutions and staffing services to healthcare facilities in the U.S.