AMN Healthcare enters $225 million revolver, $150 million term loan

By Jennifer Chiou

New York, April 21 - AMN Healthcare Services Inc. entered into on April 18 a credit agreement with SunTrust Bank as administrative agent, providing for a $225 million secured revolving credit facility and a $150 million secured term loan, according to an 8-K filing with the Securities and Exchange Commission.

The revolver includes a $40 million sublimit for the issue of standby letters of credit and a $20 million sublimit for swingline loans.

The credit agreement has a $125 million accordion option, the filing stated.

The company drew down the full $150 million under the term loan and about $19.5 million under the revolver to repay its prior credit facility.

In addition, roughly $9.5 million of standby letters of credit issued under the prior credit facilities have been rolled into the revolver.

The revolver comes due on April 18, 2019. Proceeds may go toward working capital, capital expenditures, permitted acquisitions and general corporate purposes.

Borrowings bear interest at Libor plus 150 bps to 225 bps, depending on leverage.

The revolver has an unused fee of 25 bps to 35 bps per year.

The 8-K said that the term loan is subject to amortization of principal of 5% per year of the original term loan amount, payable in equal quarterly installments.

If the company's consolidated leverage ratio equals or exceeds 3.00 to 1.00 as of the last day of a fiscal year, the credit agreement requires the borrower to make mandatory prepayments of the facilities within 90 days after the end of that fiscal year, beginning with the fiscal year ending Dec. 31, 2014, in an amount equal to 50% of the excess cash flow for that fiscal year, less any voluntary prepayments made during the fiscal year of (1) the term loan or (2) the revolver.

In addition, AMN and its subsidiaries are not to exceed the maximum consolidated leverage ratio, which is initially set at 4.00 to 1.00 but ultimately steps down to 3.50 to 1.00 beginning with the fiscal quarter ending June 30, 2016.

The companies must also maintain a minimum consolidated interest coverage ratio of 2.50 to 1.00.

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

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