Air Methods upsizes term loan to $1.13 billion, trims bond offering by $60 million

By Paul A. Harris

Portland, Ore., April 13 – Air Methods Corp. upsized its seven-year term loan B (B1/B+) to $1.13 billion from $1.07 billion as it shifted $60 million of proceeds to the loan from its concurrent high yield bond deal, according to a market source.

The shift sees a downsizing of the eight-year senior notes (Caa1/CCC+) to $500 million from $560 million.

Term loan commitments were due at 11 a.m. ET on Thursday.

The term loan is talked at Libor plus 375 basis points with a 1% Libor floor and an original issue discount of 99 and comes with 101 soft call protection for six months.

The company’s credit facility, now sized at $1,255,000,000, increased from $1,195,000,000, also includes a $125 million five-year revolver.

Morgan Stanley & Co. LLC, RBC Capital Markets, Barclays, Jefferies LLC and Citigroup Global Markets Inc. are managing the bond sale.

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

The issuing entity for the bonds will be ASP AMC Merger Sub, Inc., which is to be merged with and into Air Methods Corp.

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.

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