Global Medical downsizes five-year notes to $600 million, sets rate at 6½%; pricing Thursday

By Paul A. Harris

Portland, Ore., Sept. 24 – Global Medical Response Inc. downsized its offering of five-year senior secured notes (B2/B) to $600 million from $740 million and set the final rate at 6½%, according to market sources.

The Rule 144A and Regulation S for life deal is expected to price by midday Thursday.

Price talk was in the 6 3/8% area. Initial guidance was in the mid-6% area.

Morgan Stanley & Co. LLC is the left lead bookrunner. KKR, Barclays, BofA Securities Inc., Capital One Securities Inc., Credit Suisse Securities (USA) LLC, Goldman Sachs & Co. LLC, Jefferies LLC, J.P. Morgan Securities LLC and RF are the joint bookrunners.

The notes become callable after one year at par plus 50% of the coupon.

With the downsizing of the notes, $140 million of proceeds were shifted to the concurrent term loan, increasing the loan size to $1.64 billion from $1.5 billion.

Prior to being downsized, the notes offering had been upsized to $740 million from $500 million.

The Greenwood Village, Colo.-based medical care provider, previously known as Air Medical, plans to use the proceeds from the notes and loans to refinance its term loan due 2022 and its 6 3/8% senior notes due 2023.

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