Cross Country Healthcare, Inc. (Nasdaq: CCRN) today announced the refinancing of its revolving loan credit facility and extension of the maturity date by approximately three years. The Company also elected to reduce the aggregate principal amount of the revolving credit facility to $50.0 million. The revolving credit facility was undrawn upon the closing of the refinancing.
"We chose to extend our revolving credit facility, which was set to expire later this year in November, to coincide with the September 2013 maturity date of our existing term loan facility. This extension has no impact on the interest rate spreads on our existing term loan and it gives us greater financial flexibility for an additional three years. As a result, we believe we benefit from the lowest borrowing costs amongst our public competitors," said Emil Hensel, Chief Financial Officer of Cross Country Healthcare, Inc.
The revolving credit facility will be used to provide ongoing working capital and for other general corporate purposes, including acquisitions. Wells Fargo Securities, LLC served as the sole lead arranger and sole lead bookrunner for this transaction. Wells Fargo Bank, National Association and a syndicate of financial institutions and other entities are the lenders. The Company's total bank debt outstanding under its credit agreement was $56.9 million as of May 28, 2010.
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