Air Medical accelerates $1.46 billion loan, commitments due Monday

By Paul A. Harris

Portland, Ore., Sept. 21 – Air Medical Group Holdings Inc. moved up timing on its $1,455,000,000 seven-year incremental senior secured covenant-light term loan B (B1/B), according to a market source.

Commitments are due at the end of day ET on Monday. Previously books were to remain open through Tuesday.

As reported, the deal is in the market with price talk of Libor plus 425 basis points to 450 bps with a 1% Libor floor and an original issue discount of 99.

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

With the acceleration of timing there was an announcement of a ticking fee to kick in after 30 days. From day 31 to day 60 the fee will be 50% of the margin. Thereafter it will be the full margin.

Morgan Stanley Senior Funding Inc., Jefferies LLC, Bank of America Merrill Lynch, Citigroup Global Markets Inc., Goldman Sachs Bank USA, Credit Suisse Securities (USA) LLC and Nomura Securities International are the joint lead arrangers on the deal.

Proceeds will be used to help fund the acquisition of American Medical Response from Envision Healthcare Corp. in a transaction valued at $2.4 billion.

Other funds for the acquisition will come from an unsecured debt commitment from PSP Investments Credit USA LLC and Ares Capital Management LLC, and equity.

Closing is expected in the fourth quarter, subject to regulatory approval and customary closing conditions.

Air Medical Group, a KKR portfolio company, is a Dallas-based provider of air and ground ambulance programs. American Medical Response is a Greenwood Village, Colo.-based medical transportation company.

Upon completion of the transaction, the combined company will adopt a new name.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.