On Assignment Announces New $500 Million Credit Facility
On Assignment Announces New $500 Million Credit Facility
CALABASAS, Calif.--(BUSINESS WIRE)-- On Assignment, Inc. (NYS: ASGN) , 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." Mr. 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."
Additional details regarding the company's new credit facility are set forth in its Current Report on Form 8-K filed with the Securities and Exchange Commission on May 16, 2013.
About On Assignment
On Assignment, Inc. (NYS: ASGN) , is a leading global provider of in-demand, skilled professionals in the growing technology, healthcare and life sciences sectors, where quality people are the key to success. The Company goes beyond matching résumés with job descriptions to match people they know into positions they understand for temporary, contract-to-hire, and direct hire assignments. Clients recognize On Assignment for their quality candidates, quick response, and successful assignments. Professionals think of On Assignment as career-building partners with the depth and breadth of experience to help them reach their goals.
On Assignment was founded in 1985 and went public in 1992. The corporate headquarters are located in Calabasas, California, with a network of approximately 130 branch offices throughout the United States, Canada, United Kingdom, Netherlands, Ireland and Belgium. Additionally, physician placements are made in Australia and New Zealand. To learn more, visit http://www.onassignment.com.
On Assignment
Ed Pierce
Chief Financial Officer
(818) 878-7900
KEYWORDS: United States North America California
INDUSTRY KEYWORDS:
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