Cross Country's ABL covenant becomes springing, tied to excess availability thresholds

CROSS COUNTRY HEALTHCARE INC

Amendment No. 6 changes fixed charge coverage ratio from maintenance to springing covenant triggered when excess availability falls below greater of 15% of loan cap or $24M.
Once a Compliance Period starts, covenant tested quarterly until excess availability exceeds that threshold for 30 consecutive days.
Cure right added: cash equity contributions can boost consolidated EBITDA within 10 business days of Compliance Period start.
Amendment effective September 29, 2023; all conditions satisfied; existing credit agreement otherwise unchanged.

Key facts

Extracted from this filing and checked against the source text.

Material Agreements SEC 8-K Item 1.01/1.02 confidence 0.95

CROSS COUNTRY HEALTHCARE INC amended ABL Credit Agreement with Wells Fargo Bank N.A. valued at Amends fixed charge coverage ratio from minimum to springing based on excess availability (effective 2023-09-29).

Action: amendment
Agreement: credit facility
Counterparty: Wells Fargo Bank N.A.
Value: Amends fixed charge coverage ratio from minimum to springing based on excess availability
Effective: 2023-09-29

Exact text from the filing

On September 29, 2023, Cross Country Healthcare, Inc. (the "Company") amended its ABL Credit Agreement dated October 25, 2019, as amended, restated or otherwise modified from time to time, among the Company, substantially all of its wholly-owned subsidiaries, and Wells Fargo Bank N.A., as lender and administrative agent.

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Source: SEC EDGAR

accession 0001157523-23-001455

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