Envision plans $635 million term loan for Rural/Metro purchase

By Sara Rosenberg

New York, July 30 – Envision Healthcare Corp. has received a commitment for a $635 million incremental seven-year covenant-light term loan to fund its acquisition of Rural/Metro Corp., according to an 8-K filed with the Securities and Exchange Commission on Thursday.

Barclays and Goldman Sachs Bank USA are the joint lead arrangers on the deal. Deutsche Bank is the administrative agent.

The term loan is expected to be priced at Libor plus 300 basis points with a 1% Libor floor and have 101 soft call protection for six months.

Under the agreement, Rural/Metro is being bought for about $620 million in cash by Envision’s medical transportation segment American Medical Response.

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

Envision is a Greenwood Village, Colo.-based provider of health care related services to consumers, hospitals, health care systems, health plans and local, state and national government entities. Rural/Metro is a Scottsdale, Ariz.-based provider of emergency and non-emergency ambulance transportation as well as specialty fire protection services.

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