Cross Country Healthcare amends loan to modify ratio requirements

By Jennifer Chiou

New York, Oct. 3 - Cross Country Healthcare Inc. entered into an amendment to its $75 million credit facility with Wells Fargo Bank as administrative agent, according to an 8-K filing with the Securities and Exchange Commission.

Effective Sept. 28, the amendment modifies the maximum consolidated total leverage ratio for the fiscal quarter ended Sept. 30 to 2.75 to 1 and the minimum consolidated fixed-charge coverage ratio for the fiscal quarter ended Sept. 30 to 1.25 to 1.

The original ratios contained in the credit agreement dated July 10 will then be in effect thereafter.

In addition, the filing stated that the aggregate amount of new revolving credit loans and swingline loans may not exceed $3 million and new letters of credit issued may not exceed $1 million from Sept. 28 until the date on which Cross Country is required to deliver an officer's compliance certificate to the administrative agent for the fiscal year ending Dec. 31.

During this period, the company is prohibited from making investments and purchasing, redeeming, retiring or otherwise acquiring any shares of its capital stock.

Cross Country Healthcare is a Boca Raton, Fla.-based provider of healthcare staffing services.

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