Air Methods launches $1.07 billion term loan B at Libor plus 375 bps

By Sara Rosenberg

New York, April 4 – Air Methods Corp. launched on Tuesday a $1.07 billion seven-year term loan B with price talk of Libor plus 375 basis points with a 1% Libor floor and an original issue discount of 99, according to market sources.

The term loan has 101 soft call protection for six months, sources said.

Prior to the bank meeting, the size of the term loan B was described as up to $1.35 billion.

The company’s $1,195,000,000 in credit facilities also include a $125 million five-year revolver.

RBC Capital Markets, Morgan Stanley Senior Funding Inc., Barclays, Citigroup Global Markets and Jefferies Finance LLC are the lead banks on the deal.

Commitments are due at noon ET on April 12, sources added.

Proceeds will be used to help fund the buyout of the company by American Securities LLC for $43.00 per share in cash in a transaction with a total enterprise value of about $2.5 billion, including net debt.

Other funds for the transaction will come from equity.

Closing is expected by the end of the second quarter, subject to the expiration of the applicable waiting period under the Hart-Scott-Rodino Antitrust Improvements Act of 1976 and the satisfaction of a minimum tender condition.

Air Methods is an Englewood, Colo.-based provider of air medical transportation and air tourism.

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