By Paul A. Harris
Portland, Ore., Sept. 24 – Global Medical Response Inc. priced a downsized $600 million issue of five-year senior secured notes (B2/B) at par to yield 6½% on Thursday, according to market sources.
The issue size was decreased from $740 million after having earlier been upsized from $500 million.
The yield printed at the wide end of yield talk in the 6 3/8% area and in line with initial guidance in the mid-6% area.
Morgan Stanley & Co. LLC was the left lead bookrunner. Joint bookrunners were 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 Regions Securities LLC.
With the downsize, $140 million of proceeds were shifted to the concurrent term loan, increasing the loan size to $1.64 billion from $1.5 billion.
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.
| Issuer: | Global Medical Response Inc.
|
| Amount: | $600 million, decreased from $740 million after upsizing from $500 million
|
| Maturity: | Oct. 1, 2025
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| Securities: | Senior secured notes
|
| Left lead bookrunner: | Morgan Stanley & Co. LLC
|
| Joint bookrunners: | 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 Regions Securities LLC
|
| Coupon: | 6½%
|
| Price: | Par
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| Yield: | 6½%
|
| Spread: | 623 bps
|
| First call: | Oct. 1, 2021 at 103.25
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| Equity clawback: | 40% at 106.5 until Oct. 1, 2021
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| Trade date: | Sept. 24
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| Settlement date: | Oct. 2
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| Ratings: | Moody's: B2
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| S&P: B
|
| Distribution: | Rule 144A and Regulation S for life
|
| Price talk: | 6 3/8% area
|
| Marketing: | Roadshow
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