AMN ups term B add-on to $78 million, cuts second-lien to $40 million

By Sara Rosenberg

New York, Aug. 25 - AMN Healthcare Services Inc. increased the size of its term loan B add-on (Ba2/BB) to $78 million from $68 million and decreased the size of its second-lien term loan (B1/B+) to $40 million from $50 million, according to a market source.

Pricing on the term loan B add-on and the existing term loan B debt that the company is extending in connection with this new deal firmed at Libor plus 550 basis points, the high end of initial talk of Libor plus 525 bps to 550 bps, the source said.

As before, the add-on and the extended term loan B will have a 1.75% Libor floor and 101 soft call protection for one year, and the add-on is being sold at an original issue discount of 98.

Maturity on the add-on and the extended B loan will 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.

As for the company's new second-lien term loan due June 2016, pricing was flexed up to Libor plus 1,000 bps from the Libor plus 900 bps area, the Libor floor was decreased to 1.75% from 2% and the original issue discount firmed at 97, the wide end of the initial 97 to 98 talk, the source continued.

Additionally, the second-lien loan is now non-callable for 1½ years, then at 103, 102 and 101, as opposed to being non-callable for one year, then at 102 and 101.

The company is also looking to extend its revolving credit facility to August 2014 from December 2012.

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

The new $118 million in term loans is being obtained 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 help refinance Nursefinders' $132 million of bank debt.

Closing on the acquisition is expected to take place on or before Sept. 1, 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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