Air Medical ups term B to $1.01 billion, flexes to Libor plus 350 bps

By Sara Rosenberg

New York, April 13 – Air Medical Group Holdings Inc. increased the size of its seven-year term loan B to $1.01 billion from $920 million and decreased pricing to Libor plus 350 basis points from Libor plus 400 bps, according to a market source.

Also, a step-down was added to the term loan to Libor plus 325 bps at 4.25 times first-lien leverage and original issue discount talk was revised to 99½ to 99¾ from 99 to 99½, the source said.

The term loan still has a 1% Libor floor and 101 soft call protection for six months.

Commitments are due at noon ET on Tuesday. The deadline was accelerated from Wednesday late last week.

Along with the term loan, the company’s now $1,185,000,000 senior credit facility, up from $1,095,000,000, includes a $175 million ABL facility.

Morgan Stanley Senior Funding Inc., Jefferies Finance LLC, KKR Capital Markets LLC, Nomura Securities International Inc. and MCS Capital Markets LLC are the joint lead arrangers and bookrunners on the term loan B, and Bank of America Merrill Lynch, Morgan Stanley, Jefferies, KKR, Nomura and MCS are the joint lead arrangers on the ABL facility.

Proceeds will be used to help fund the buyout of the company by KKR from Bain Capital and Brockway Moran & Partners.

Funds from the term loan upsizing are reducing the junior capital raise for the transaction, the source added.

Closing is expected in the second quarter, subject to customary regulatory approvals.

Air Medical is a Lewisville, Texas-based provider of air ambulance services.

Correction: Air Medical Group Holdings Inc. is seeking commitments for its term loan B by noon ET on Tuesday, not on Wednesday as previously reported by Prospect News.

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