Cross Country gets $50 million five-year loan, $100 million revolver

By Angela McDaniels

Tacoma, Wash., June 22 – Cross Country Healthcare, Inc. entered into a credit agreement on Wednesday that provides for a $50 million term loan and a $100 million revolving credit facility, both of which mature on June 22, 2021, according to an 8-K filing with the Securities and Exchange Commission.

The initial interest rate is one-month Libor plus 225 basis points. The margin over Libor ranges from 175 bps to 275 bps based on the company’s consolidated total leverage ratio.

The revolver has an initial commitment fee of 30 bps. It ranges from 25 bps to 40 bps.

The revolver includes a $35 million sublimit for standby letters of credit and a $15 million sublimit for swingline loans.

The credit agreement has a $50 million accordion feature that can be used to increase the revolver commitments or for incremental term loans.

The term loan is payable in quarterly installments equal to 1.25% of par for the first four installments, 1.875% for the next eight installments and 2.5% for the remaining installments.

SunTrust Robinson Humphrey, Inc. is the lead arranger and the bookrunner. SunTrust Bank is the administrative agent, the swingline lender and an issuing bank. BMO Harris Bank, NA is the syndication agent. Bank United, NA and Fifth Third Bank are the co-documentation agents.

Proceeds were used to refinance the company’s asset-based revolver and second-lien term loan, which were terminated. Proceeds will also be used to finance permitted acquisitions, for working capital needs, for capital expenditures and for other general corporate purposes. In addition, $23.6 million of standby letters of credit issued under the asset-based revolver were rolled into the new revolver.

The company is required to prepay the credit facilities under certain circumstances including from net cash proceeds from asset sales or dispositions in excess of certain thresholds as well as from net cash proceeds from the issuance of certain debt.

The credit agreement is guaranteed by all of the company’s domestic wholly owned subsidiaries.

Cross Country is based in Boca Raton, Fla., and provides health-care workforce solutions.

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