AMN Healthcare gets $400 million five-year revolving credit facility

By Sarah Lizee

Olympia, Wash., Feb. 12 – AMN Healthcare Services, Inc. entered into a new $400 million five-year revolving credit facility to replace its previous $275 million credit facility, according to a press release.

The agreement includes the ability to expand borrowing by $250 million plus additional amounts based on a net leverage ratio test, subject to some terms and conditions.

The company entered into the agreement on Feb. 9 with SunTrust Bank as administrative agent, according to an 8-K filing with the Securities and Exchange Commission.

There is a $50 million sublimit for the issuance of standby letters of credit and a $50 million sublimit for swingline loans.

About $19.32 million of standby letters of credit issued under the company’s existing credit facilities were rolled into and deemed issued under the revolver.

Borrowings bear interest at Libor plus 100 basis points to 200 bps, depending on the company’s consolidated net leverage ratio.

Compared with the previous credit agreement, pricing was reduced by at least 25 bps at all leverage levels, the release said.

There are currently no borrowings outstanding on the revolver.

The facility, which matures Feb. 9, 2023, is available for working capital, capital expenditures, permitted acquisitions and general corporate purposes.

Other terms of the agreement are consistent with or improved from the one it replaced, the company said.

"With this new credit facility, AMN has obtained greater borrowing capacity at lower interest rates, with extended maturity and improved flexibility under covenants,” Brian M. Scott, chief financial officer, said in the release.

“This larger facility reflects the strength of the company and is important in supporting AMN's long-term growth strategy.”

SunTrust Robinson Humphrey, Inc., Bank of America Merrill Lynch, and JPMorgan Chase Bank, NA acted as joint lead arrangers and bookrunners on the financing.

AMN Healthcare Services is a San Diego-based provider of health care workforce solutions and staffing services.

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