On Assignment amends credit facility, prepays $15 million

By Angela McDaniels

Tacoma, Wash., March 30 - On Assignment, Inc. said its bank lending group agreed to amend its senior secured credit facility, providing increased flexibility under the leverage and interest covenants.

The company is also voluntarily prepaying $15 million of its term loans, according to a company news release.

Following the amendment, the leverage covenant is 3.25 times for Jan. 1 through Dec. 31, 2009, 3.00 times for Jan. 1, 2010 through Sept. 30, 2010, 2.75 times for Oct. 1, 2010 through Dec. 31, 2011 and 2.50 times for the remainder of the loan.

The interest coverage covenant is now 4.00 times through the life of the loan.

The definition of Libor rate was modified to include a 3% floor, and the applicable margin was increased by by 150 basis points.

The amendment does not affect the total available amount of the revolving credit facility or the remaining term.

Calabasas, Calif.-based On Assignment provides staffing in specialty skills such as laboratory/scientific, health care, information technology and engineering.

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