By Paul A. Harris
Portland, Ore., April 13 – Air Methods Corp. priced a downsized $500 million issue of eight-year senior notes (Caa1/CCC+) at par to yield 8% on Friday, according to a syndicate source.
The issue size was decreased from $560 million, with $60 million of proceeds shifted to the concurrent term loan, which was upsized to $1.13 billion from $1.07 billion.
The reoffer price and yield printed on top of final talk. Earlier yield talk was 7½% to 7¾%.
Morgan Stanley & Co. LLC, RBC Capital Markets, Barclays, Jefferies LLC and Citigroup Global Markets Inc. managed the bond sale.
Proceeds will be used to help fund the buyout of the Englewood, Colo.-based provider of air medical transportation and air tourism by American Securities LLC.
| Issuer: | ASP AMC Merger Sub, Inc. to be merged with Air Methods Corp.
|
| Amount: | $500 million, decreased from $560 million
|
| Maturity: | May 15, 2025
|
| Securities: | Senior notes
|
| Bookrunners: | Morgan Stanley & Co. LLC, RBC Capital Markets, Barclays, Citigroup Global Markets Inc., Jefferies LLC
|
| Coupon: | 8%
|
| Price: | Par
|
| Yield: | 8%
|
| Spread: | 584 bps
|
| Call protection: | Three years
|
| Trade date: | April 13
|
| Settlement date: | April 21
|
| Ratings: | Moody's: Caa1
|
| S&P: CCC+
|
| Distribution: | Rule 144A and Regulation S for life
|
| Price talk: | 8% at par, revised from 7½% to 7¾%
|
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