Medical Staffing in talks on breach of first-lien loan financial covenants

By Sara Rosenberg

New York, Nov. 30 - Medical Staffing Network Holdings Inc. is in discussions with GE Capital, the administrative agent on its first-lien credit facility, about non-compliance with covenants, according to an 8-K filed with the Securities and Exchange Commission on Monday.

As of Oct. 25, the company had not met the minimum consolidated fixed charge coverage ratio and the minimum consolidated EBITDA requirement.

If the company is unable to obtain a waiver or other acceptable arrangement with the first-lien lenders, it will likely have a material adverse effect on its business and financial condition.

The company owed approximately $81 million to the first-lien lenders at Oct. 25.

Medical Staffing is a Boca Raton, Fla.-based health care staffing company.

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