Cross Country Healthcare to increase ABL revolver to $85 million

By Angela McDaniels

Tacoma, Wash., June 2 - Cross Country Healthcare, Inc. has a commitment from Bank of America, NA to increase its borrowing capacity under its senior secured asset-based revolving credit facility to $85 million from $65 million, according to a company news release.

The commitment was made in connection with the company's agreement to acquire substantially all of the assets and business of Medical Staffing Network, LLC and assume substantially all of its liabilities for a purchase price of $48.3 million, subject to a post-closing working capital adjustment. The acquisition is expected to occur before the end of June.

The company also entered into commitments for subordinated debt consisting of a $30 million five-year variable-rate term loan and $25 million of six-year convertible notes. The combined effective interest rate for the subordinated debt is expected to be 7.72% for 2014.

Cross Country and Medical Staffing are health-care staffing companies based in Boca Raton, Fla.

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