AMN Healthcare prices $400 million in senior notes at 6.5%

DALLAS - AMN Healthcare Services, Inc. (NYSE:AMN), currently valued at $734 million and trading near its 52-week low, announced Monday it has priced a private offering of $400 million in senior unsecured notes due 2031 with an interest rate of 6.5%. According to InvestingPro analysis, the company maintains a strong free cash flow yield despite recent market challenges.

The notes will be issued at 100% of face value and guaranteed by the company’s affiliates that guarantee its credit facilities, according to a statement based on a company press release.

AMN Healthcare plans to use proceeds from the offering, along with cash on hand and borrowings under a new revolving facility, to redeem all $500 million of its outstanding 4.625% senior unsecured notes due 2027. The company has issued a conditional redemption notice for the 2027 notes, set for October 22, contingent upon completion of the new offering.

The offering is expected to close on October 6, subject to customary closing conditions.

The 2031 notes will be offered only to qualified institutional buyers under Rule 144A of the Securities Act and to non-U.S. persons outside the United States in compliance with Regulation S. The notes will not be registered under the Securities Act.

AMN Healthcare describes itself as a provider of healthcare workforce solutions, with its professionals reaching nearly 15 million patients at more than 2,100 healthcare systems in 2024. While the company expects revenue decline this year, InvestingPro data shows five analysts have revised earnings upwards for the upcoming period, suggesting potential improvement ahead. For detailed financial health metrics and additional insights, investors can access the comprehensive Pro Research Report available on InvestingPro.

In other recent news, AMN Healthcare Services, Inc. reported second-quarter 2025 revenue of $658.2 million, marking an 11% decline from the previous year. Despite the decrease, the results surpassed both JMP’s estimate of $647.1 million and the consensus forecast of $652.1 million. Fitch Ratings revised its outlook on AMN Healthcare to negative, citing limited visibility on business stabilization and potential leverage issues by 2026. Additionally, AMN Healthcare announced plans to amend its secured revolving credit facility, reducing its size from $750 million to $450 million and extending its maturity to October 2030.

In a related financial move, AMN Healthcare plans to offer $400 million in senior notes due 2031 to redeem $500 million of its outstanding senior unsecured notes due 2027. Analyst firms JMP and BMO Capital have both lowered their price targets for AMN Healthcare to $22.00, while maintaining a Market Outperform and Outperform rating, respectively. These adjustments were influenced by the company’s recent earnings report, which exceeded expectations due to stronger margins despite lower volumes.

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