BOCA RATON, Fla.--(BUSINESS WIRE)--Cross Country Healthcare, Inc. (Nasdaq: CCRN) today announced it has completed a new $140 million Credit Agreement with a lender group led by SunTrust Bank, as administrative agent and issuing bank. The Credit Agreement provides a $40 million term loan and a revolving credit facility of up to $100 million (together the “Facilities”), both of which mature in five years.
The term loan will initially bear interest at One Month LIBOR plus 225 basis points, and amounts to be drawn on the revolving line of credit will initially bear interest at One Month LIBOR plus 225 basis points.
The Facilities replace both the Company’s asset-based revolving credit facility and its subordinated term loan. Proceeds from the $40 million term loan were used primarily to refinance existing indebtedness under the asset-based revolving credit facility and the subordinated term loan, including prepayment fees and interest, as well as fees and expenses incurred. The revolving credit facility will be used to provide additional liquidity for ongoing working capital, fund permitted acquisitions and other general corporate purposes of the Company and its subsidiaries.
“This marks another milestone in our goal to deliver superior financial performance and drive shareholder value,” William J. Burns, Chief Financial Officer said. “Our new Credit Agreement significantly lowers our overall borrowing costs and expands our liquidity, allowing us to continue to grow our business and make strategic investments. We believe Cross Country’s improved financial performance, a positive outlook on our industry and a stable financing market all contributed to our ability to successfully complete this new financing.”
ABOUT CROSS COUNTRY HEALTHCARE
Cross Country Healthcare, headquartered in Boca Raton, Florida, is a national leader in providing leading-edge healthcare workforce solutions. Our solutions are geared towards assisting our clients solve labor-related issues while maintaining high quality outcomes. With more than 30 years of experience, we are dedicated to placing highly qualified nurses and physicians as well as allied health, advanced practice, and case management professionals. We also provide both retained and contingent placement services for physicians, as well as retained search services for healthcare executives. We have more than 9,500 active contracts with a broad range of clients in both clinical and nonclinical settings, including acute care hospitals, physician practice groups, nursing facilities, both public schools and charter schools, rehabilitation and sports medicine clinics, government facilities, and homecare. Through our national staffing teams and network of more than 70 branch office locations, we are able to place clinicians on travel and per diem assignments, local short-term contracts and permanent positions. We are a market leader in providing flexible workforce management solutions, which include managed services programs (MSP), internal resource pool consulting and development, electronic medical record (EMR) transition staffing, recruitment process outsourcing, predictive modeling and consultative services.
