Cross Country Healthcare announced it has entered into an agreement to amend its second lien loan and security agreement. Under the terms of the amendment, the interest rate on the term loan was modified at no cost from LIBOR (1% floor) plus 6.50% to LIBOR (1% floor) plus a rate predicated on the company’s net leverage ratio ranging from less than 2.50 (4.75%) to greater than 4.00 (6.50%).
Cross Country said, as of June 30, 2015, this term loan had an outstanding balance of $30 million.
According to a response to an email, William “Bill” Grubbs, president and CEO of Cross Country Healthcare, said the second lien lender was Benefit Street Partners, the lending arm of Providence Equity Capital Markets.
“We took the opportunity to amend our loan agreement at no cost based on a favorable credit market, our improved credit profile and the strength of the relationship with our second lien lender,” said William J. Grubbs, president and CEO of Cross Country Healthcare. “Based on our current profitability and level of indebtedness, we expect to reduce our term loan interest rate by 175 basis points as of July 1, 2015, which provides a meaningful reduction in our cost of borrowing.”
Boca Raton, FL-based Cross Country Healthcare is a provider of healthcare workforce solutions.