Cross Country enters $100 million term loan for Libor plus 575 bps

Chicago, June 8 – Cross Country Healthcare, Inc. entered into a new $100 million second-lien term loan with an interest rate of one-month Libor plus 575 basis points, according to a press release.

The interest rate has a 0.75% Libor floor.

The loan has a six-year tenor.

Proceeds will be used to pay the $25 million cash purchase price, as well as costs, fees, and expenses in connection with the acquisition of Workforce Solutions Group, Inc. on June 8.

Any remaining proceeds will be used to pay down a portion of the asset-based line of credit.

The purchase price for WSG included cash and $5 million shares of Cross Country common stock.

Sellers are also eligible to receive an earn-out based on WSG’s performance for the next three years that could provide up to an additional $15 million of cash.

“I am...pleased to have a strong partner such as Blackstone enter our capital structure with a significant commitment to our acquisition strategy. This additional capacity will allow for future tuck-ins that further our growth plans,” Kevin C. Clark, co-founder and chief executive officer of Cross Country Healthcare said.

Cross Country is based in Boca Raton, Fla., and provides healthcare workforce solutions.

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