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On Assignment Announces New $500MM Credit Facility With Wells, Others

May 17, 2013, 07:44 AM
Filed Under: Staffing Services

On Assignment, Inc., a leading global provider of diversified professional staffing solutions, announced today that it has closed on a new $500 million credit facility, which is a refinancing of the previous credit facility.

The new $500 million facility consists of a $125 million revolving line of credit, a $100 million 5-year term A loan and a $275 million 7-year term B loan. The revolving line of credit and the term A loan bear interest at LIBOR plus 1.75% to 2.5% depending on the leverage ratio. At closing, the interest rate on these borrowings is LIBOR (with no LIBOR floor) plus 2.0% and borrowings under the revolver were $8.5 million. The term B loan bears interest at LIBOR (with a LIBOR floor of 1%) plus 2.5%.

Peter Dameris, president and CEO of On Assignment stated, “We are very pleased with the outcome of this refinancing. Our interest rate is reduced by 150 basis points on our term B loan and 75 to 125 basis points on the revolver and term A loan and we have greater borrowing capacity and flexibility for future acquisitions and stock repurchases.” Dameris continued, “We were able to accomplish these improvements in terms because of the favorable credit markets and our higher credit agency ratings, which was the result of our strong financial performance and our demonstrated ability to generate cash and reduce leverage.”

On Assignment is a  global provider of in-demand, skilled professionals in the growing technology, healthcare and life sciences sectors, where quality people are the key to success.

View the SEC filing here.

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