Cross Country Healthcare gets $65 million asset-based revolver

By Angela McDaniels

Tacoma, Wash., Jan. 11 - Cross Country Healthcare, Inc. entered into a $65 million three-year senior secured asset-based revolving credit facility with a $20 million accordion feature on Wednesday, according to an 8-K filed Friday with the Securities and Exchange Commission.

Bank of America, NA is the agent.

The facility includes a $20 million subfacility for standby letters of credit and a subfacility for swingline loans up to an amount equal to 10% of the revolver commitments.

The initial interest rate is Libor plus 150 basis points. The spread over Libor ranges from 150 bps to 200 bps based on the company's excess availability under the revolver.

If the letters of credit and the average daily balance of revolver loans was 50% or less of the revolver commitments during the preceding calendar month, then the unused line fee rate is 37.5 bps. Otherwise, the fee rate is 25 bps.

The initial proceeds were used to repay outstanding amounts on the company's $75 million credit facility, which was then terminated. Wells Fargo NA was the administrative agent.

The revolver will be for ongoing working capital and for other general corporate purposes of the company and its subsidiaries.

The total amount of advances cannot exceed the lesser of (a) (i) $65 million or (ii) 85% of eligible billed accounts receivable plus (b) the lesser of (i) 85% of eligible unbilled accounts receivable and (ii) $12 million minus (c) reserves, which include one month's worth of W-2 payroll and fees payable to independent contractors.

The company is required to meet a minimum fixed charge coverage ratio of 1 times if its excess availability under the revolver is less than the greater of (i) 12.5% of the loan cap, as defined in the loan agreement, and (ii) $6.25 million.

The revolver is guaranteed by all material domestic subsidiaries that are not co-borrowers.

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

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