SAN DIEGO, April 9, 2013 /PRNewswire/ -- AMN Healthcare Services, Inc. (NYSE: AHS), healthcare's workforce innovator and largest provider of staffing services, announced that the amendment of its credit agreement went into effect today. Under the terms of the amendment, the interest rate on the term loan was reduced to a floating rate upon either a LIBOR (with a floor of 0.75%) or a base rate option selected by the Company, plus a spread of 3.00% and 2.00%, respectively. The interest rate under the revolving line of credit was also reduced. As of March 31, 2013, the revolver and term loan had outstanding balances of $1 million and $158 million, respectively.
"Our amended credit agreement reduces our term loan interest rate by 200 basis points, which provides a meaningful reduction in our cost of borrowing," said Brian M. Scott, Chief Financial Officer of AMN Healthcare. "The agreement also provides increased flexibility in terms of our maximum leverage ratio. We saw an opportunity to amend our agreement given the combined factors of a favorable credit market, AMN's strong financial performance and improved credit profile, and a positive industry outlook. For the foreseeable future, we intend to continue utilizing our free cash flow to reduce our long-term debt balance."
Additional details regarding the Company's new credit agreement are set forth in its Current Report on Form 8-K, filed with the Securities and Exchange Commission on March 4, 2013.
About AMN Healthcare
AMN Healthcare is the innovator in healthcare workforce solutions and staffing services to healthcare facilities across the nation. AMN Healthcare's workforce solutions - including managed services programs, recruitment process outsourcing and consulting services - enable providers to successfully reduce complexity, increase efficiency and improve patient outcomes within the rapidly evolving healthcare environment. The Company provides unparalleled access to the largest network of quality clinicians and physicians through its innovative recruitment strategies and breadth of career opportunities. Clients include acute-care hospitals, government facilities, community health centers and clinics, physician practice groups and many other healthcare settings. For more information, visit http://www.amnhealthcare.com.
This press release contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Such statements include expectations regarding the reduced cost of debt, improving free cash flow, and reduction in debt. The Company based these forward-looking statements on its current expectations, estimates and projections about future events and the industry in which it operates using information currently available to it. Actual results could differ materially from those discussed in, or implied by, these forward-looking statements. Forward-looking statements are identified by words such as "believe," "anticipate," "expect," "intend," "plan," "will," "may," "estimates," variations of such words and other similar expressions. In addition, any statements that refer to expectations, projections or other characterizations of future events or circumstances are forward-looking statements. Factors that could cause actual results to differ from those implied by the forward-looking statements contained in this press release are set forth in the Company's Annual Report on Form 10-K for the year ended December 31, 2012 and its other periodic reports as well as its current and other reports filed with the Securities and Exchange Commission. Be advised that developments subsequent to this press release are likely to cause these statements to become outdated with the passage of time.
Amy C. Chang
Vice President, Investor Relations
SOURCE AMN Healthcare Services, Inc.