AMN Healthcare Services focused on repaying debt

By Jennifer Lanning Drey

Savannah, Ga., Jan. 10 - One of AMN Healthcare Services Inc.'s primary focuses over the next few years will be using its cash flow to pay down the debt the company took on in connection with its acquisition of Medfinders, Susan Nowakowski, chief executive officer of AMN, said during a Monday presentation at the JPMorgan health care conference in San Francisco.

At the same time, the company is comfortable with its level of debt, she said.

AMN had total term debt outstanding, net of discount, of $217 million at Sept. 30 with no borrowings on the revolving credit portion of the facility, according to its most recent earnings release.

"We're in a very comfortable position in that we've been here before with this level of debt, and we believe that we're in a good place to manage that and continue to drive it down," Nowakowski said Monday.

As previously reported, AMN increased its term loan B by $68 million and obtained a new $50 million second-lien term loan in July to help fund the Medfinders acquisition.

During Monday's presentation, Nowakowski called the Medfinders acquisition AMN's "most strategically important one," with short-term benefits that include about $10 million in annualized EBITDA synergies by the fourth quarter.

The company also expects revenue synergies, she said.

Looking further into the future, AMN continues to see growth opportunities resulting from the aging population and aging clinician population, Nowakowski said.

AMN is a San Diego-based health care staffing and workforce services company.

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