Back to top

Analyst Blog

Zacks Equity Research

AMN Healthcare Services (AHS) Prices Senior Notes Offering

BAX NUVA GWPH

Trades from $3

AMN Healthcare Services, Inc. announced that it has priced its private offering of senior notes due 2024. The offering was first announced on Sep 19, 2016. The company has also increased the size of the offering from $300 million to $325 million. The senior notes will bear an interest rate of 5.125% per annum and will be issued at 100.00% of their face value. The offering is expected to close on Oct 3, 2016.

AMN Healthcare Services intends to use the proceeds from the private offering to repay $138.4 million of the existing term loan indebtedness under its credit facilities. It will also utilize $182.5 million from the proceeds to repay the revolving portion of its credit facilities and pay fees and expenses related to the offering. As of Jun 30, 2016, the company had cash and cash equivalents of $21 million. The company ended the second quarter of 2016 with total debt outstanding of $413 million.

AMN Healthcare Services is one of the largest domestic healthcare staffing companies. The company recruits healthcare professionals from around the globe for both temporary and longer-term assignments in the U.S. It is the leading staffing services’ provider of travel nurses and allied health professionals, and physician permanent placement services. AMN reports its business through three segments – nurse and allied solutions, locum tenens solutions, and other workforce solutions.
 

Zacks Rank & Key Picks

Currently, AMN Healthcare carries a Zacks Rank #2 (Buy). Other well-placed stocks in the medical sector include GW Pharmaceuticals plc (GWPH - Free Report) , NuVasive, Inc. (NUVA - Free Report) and Baxter International Inc. (BAX - Free Report) , each sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

GW Pharmaceuticals consistently surpassed expectations in the last four quarters, with an average positive surprise of 41.67%. This represents an impressive year-to-date return of approximately 54.9%, better than the S&P 500’s 5.9% over the same period.

NuVasive also has a steady record in beating earnings expectations in each of the last four quarters, with an average positive surprise of 18.98%. Year to date, the stock has outperformed the S&P 500 with a gain of approximately 23.4%.

Finally, Baxter International also surpassed expectations in each of the last four quarters, with an average positive surprise of 30.55%. This represents an impressive year-to-date return of approximately 24.48%.

Confidential from Zacks

Beyond this Analyst Blog, would you like to see Zacks' best recommendations that are not available to the public? Our Executive VP, Steve Reitmeister, knows when key trades are about to be triggered and which of our experts has the hottest hand. Click to see them now>>