AMN Healthcare sets talk on $118 million of additional loans, details amend and extend

By Sara Rosenberg

New York, Aug. 11 - AMN Healthcare Services Inc. came out with price talk on its proposed $118 million of incremental loans, as well as details on its amendment and extension proposal, as the transactions were launched with a conference call on Wednesday, according to a market source.

The company's proposed $68 million term loan B add-on (Ba2) and its extended term loan B are being talked at Libor plus 525 basis points to 550 bps with a 1.75% Libor floor, the source said. The new money is being offered at an original issue discount of 98.

Also, the add-on and the extended term loan B have 101 soft call protection for one year.

Maturity on the add-on and the extended B loan would be June 2015.

Currently, the company's term loan B debt expires in December 2013 and is priced at Libor plus 400 bps with a 2.25% Libor floor.

AMN is also looking to get a new $50 million second-lien term loan (B1) due June 2016. This tranche is talked in the Libor plus 900 bps area with a 2% Libor floor and an original issue discount of 97 to 98, the source continued.

The second-lien loan is non-callable for one year, then at 102 in year two and 101 in year three.

In addition, the company is looking to extend its revolving credit facility to August 2014 from December 2012, and price talk on the extended debt is Libor plus 525 bps to 550 bps with no Libor floor, the source added.

Bank of America, GE Capital and SunTrust are the lead banks on the deal, with Bank of America the left lead.

Lenders are being offered a 25 bps amendment fee and a 75 bps extension fee.

Consents and commitments are due on Aug. 19.

The new debt is in connection with the company's acquisition of Nursefinders Inc. for roughly 6.3 million shares of AMN common stock and about 5.7 million shares of AMN series A conditional convertible preferred stock.

Proceeds from the incremental loans will be used to refinance Nursefinders' $132 million of bank debt.

The transaction is expected to close in the third quarter, subject to customary conditions, regulatory approvals and receipt of debt financing.

AMN is a San Diego-based health care staffing and workforce services company. Nursefinders is an Arlington, Texas-based provider of clinical workforce managed services programs.

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