Air Medical launches $175 million term B-1 at Libor plus 400-425 bps

By Sara Rosenberg

New York, July 27 – Air Medical Group Holdings Inc. launched on Wednesday its $175 million senior secured incremental first-lien covenant-light term loan B-1 due April 28, 2022, with price talk of Libor plus 400 basis points to 425 bps with a 1% Libor floor and an original issue discount of 98, according to a market source.

The incremental term loan has 101 soft call protection for six months and amortization of 1% per annum, the source said.

Morgan Stanley Senior Funding Inc. and KKR Capital Markets LLC are the joint lead arrangers and bookrunners on the deal.

Commitments are due on Tuesday, the source added.

Proceeds will be used to help fund the acquisition of California Shock Trauma Air Rescue (Calstar), fund a one-time pro rata share repurchase among equity holders and pay related fees and expenses.

Other funds for the transaction will come from cash on hand.

Air Medical is a Lewisville, Texas-based provider of air ambulance services. Calstar is a McClellan, Calif.-based regional air ambulance service.

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