Cross Country Healthcare entered into a new $120 million senior secured ABL facility, replacing its prior credit facility.
The initial amounts drawn on the new ABL included funds to repay its outstanding borrowings of $75.4 million under its prior credit facility and for the payment of fees, expenses, and accrued interest, as well as to backstop and replace $20.6 million in outstanding letters of credit. The remaining availability will be used for general corporate purposes.
Additionally, the facility contains an uncommitted accordion provision to increase the amount of the facility by an additional $30 million. The ABL provides for a five-year revolving credit facility in the aggregate principal amount of up to $120 million, including a subfacility for swing loans up to $15 million and a $35 million sublimit for standby letters of credit. The ABL is subject to certain covenants and other conditions customary for agreements of this nature.
“We are pleased to partner with our new lenders, Wells Fargo and PNC Bank, both industry leaders who have shown a breadth of knowledge and understanding of our company and our industry,” said Kevin C. Clark, president and chief executive officer. “We believe this new credit facility is more cost effective and provides greater flexibility to pursue growth, both organically through the strategic initiatives we have previously announced and through potential complementary acquisitions as we work to deliver value to our shareholders.”
According to an 8-K filing, on October 25, 2019, the company terminated its existing credit agreement by with SunTrust Bank, as administrative agent, issuing bank and swingline lender: BMO Harris Bank as syndication agent and lender; Bank United, Bank of America and Fifth Third Bank as co-documentation agents and lenders; and Cadence Bank, First Tennessee Bank and SunTrust Bank as lenders.
