Air Medical ups cash pay coupon on $200 million term loan to 7 5/8%

By Sara Rosenberg

New York, May 24 - Air Medical Holdings LLC increased pricing on its $200 million five-year HoldCo contingent cash pay term loan (Caa1/CCC+) to 7 5/8% plus 75 basis points pay in-kind, from talk of 7% to 7¼% cash pay plus 75 bps pay in-kind, according to a market source.

Also, the original issue discount widened to 99 from talk of 99½ to par, the source said.

All-in cash pay yield is 7.871%, compared to the 7% to 7.371% under the original pricing guidance.

The debt is still non-callable for one year, then at 102 in year two and 101 in year three. During the non-call period, the company can pay out the loan at 102 with initial public offering proceeds.

Recommitments were due at 11 a.m. ET on Friday, the source added.

Barclays, Bank of America Merrill Lynch, Citigroup Global Markets Inc., J.P. Morgan Securities LLC and Morgan Stanley Senior Funding Inc. are the bookrunners on the deal.

Proceeds will be used to fund a dividend to shareholders.

The loan will rank pari passu with all senior unsecured debt of the company.

Air Medical is a San Antonio, Texas-based provider of community-based air ambulance services.

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