On May 16, 2013, On Assignment Inc. entered into an amended and restated credit agreement with Wells Fargo Bank, National Association, as administrative agent, swing line lender and a letter of credit issuer, and the lenders party thereto. The amended and restated credit agreement consists of: a $100.0 million, five-year term A loan facility; a $275.0 million seven-year term B loan facility; and a $125.0 million, five-year revolving loan facility, including a $10.0 million swing line sub facility and a $10.0 million sub facility for letters of credit. The amended and restated credit agreement also provides the ability to increase the loan facilities for up to the greater of $100.0 million and the amount that is equal to the great amount of additional debt that would not cause the Company to exceed certain specified conditions. Borrowings under the amended and restated credit agreement bear interest through maturity at a variable rate based upon, at the Company's option, either the Eurodollar rate or the base rate, plus in each case, an applicable margin. The applicable margin for Eurodollar rate loans for the revolving loans and the term A loans ranges, based on the applicable leverage ratio, from 1.75% to 2.50% per annum and the applicable margin for base rate loans ranges, based on the applicable leverage ratio, from 0.75% to 1.50% per annum. The applicable margin for Eurodollar rate loans for the term B loans is 2.50% per annum and the applicable margin for base rate loans is 1.50% per annum. The company is required to pay a commitment fee equal to 0.40% per annum on the undrawn portion available under the revolving loan facility if its leverage ratio is greater than or equal to 3.00:1.00, a commitment fee equal to 0.35% per annum if its leverage ratio is less than 3.00:1.00 but greater than or equal to 2.50:1.00, a commitment fee equal to 0.30% per annum if its leverage ratio is less than 2.50:1.00 but greater than or equal to 2.00:1.00, and a commitment fee equal to 0.25% per annum if its leverage ratio is less than 2.00:1.00. Additionally, the company is required to pay variable per annum fees equal to the applicable margin for Eurodollar rate loans in respect of outstanding letters of credit. During the five years after the closing date, the company will be required to make quarterly amortization payments on the term A loan facility in the aggregate annual amount equal to 10% of the original principal amount of the term A Loan facility. During the seven years after the closing date, the company will be required to make quarterly amortization payments on the term B loan facility in the aggregate annual amount equal to 1% of the original principal amount of the term B Loan facility. The Company is also required to make mandatory prepayments of loans under the amended and restated credit agreement, subject to specified exceptions, from excess cash flow and with the proceeds of asset sales, debt issuances and specified other events.

On Assignment Inc. reported unaudited consolidated earnings results for the first quarter ended March 31, 2013. For the quarter, revenues were $389,193,000 against $156,760,000 a year ago. Operating income was $23,734,000 against $9,370,000 a year ago. Income before income taxes was $18,403,000 against $8,669,000 a year ago. Income from continuing operations was $10,610,000 or $0.20 per basic and diluted share against $5,047,000 or $0.13 per diluted share a year ago. Net income was $24,613,000 or $0.46 per diluted share against $5,383,000 or $0.14 per diluted share a year ago. Capital expenditures were $2,785,000 against $2,119,000 a year ago. EBITDA was $30,968,000 against $11,414,000 a year ago. Adjusted EBITDA was $34,136,000 against $15,078,000 a year ago. Income from continuing operations - as adjusted was $18,789,000 or $0.35 per diluted share. Cash used in operations was $2,869,000 against cash provided by operations of $6,973,000 a year ago. For the second quarter of 2013, the company estimates revenues of $410 million to $414 million, gross margin of 29.8% to 30.1%, adjusted EBITDA of $41 million to $43 million, effective tax rate of 42.5%, adjusted income from continuing operations of $22.5 million to $23.5 million, adjusted income from continuing operations per diluted share of $0.41 to $0.43, income from continuing operations of $14.5 million to $15.5 million and income from continuing operations per diluted share of $0.27 to $0.29. For the full year of 2013, the company expects to trend toward the high-end of the previously-announced full year 2013 targets.

On Assignment Inc., Q1 2013 Earnings Call, Apr 24, 2013