Cross Country obtains $40 million incremental term loan for acquisition

By Tali Rackner

Minneapolis, July 6 – Cross Country Healthcare, Inc. entered into a $40 million incremental term loan on July 1 with SunTrust Bank in connection with its acquisition of Advantage RN, LLC, according to an 8-K filing with the Securities and Exchange Commission.

The incremental term loan matures on June 22, 2021.

Interest is equal to Libor plus 175 basis points to 275 bps, depending on the company’s consolidated net leverage ratio. Initially, interest is Libor plus 225 bps.

Borrowings are payable in quarterly installments, beginning Sept. 30, with each such installment being in the aggregate principal amount for the first eight installments equal to 1.875% and 2.5% of the principal amount of the term loan for the remaining installments, with the aggregate unpaid principal balance share due and payable at maturity.

In addition, on Monday, the company also entered into a second amendment to its credit agreement to allow for the acquisition of all the assets and business of Advantage RN and its subsidiaries, which was completed that day. Proceeds from the incremental term loan were used to pay part of the acquisition price.

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

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