Published on 4/17/2015 in the Prospect News High Yield Daily.
New Issue: Air Medical sells $370 million eight-year notes at par to yield 6 3/8%
By Paul A. Harris
Portland, Ore., April 17 – Air Medical priced a $370 million issue of eight-year senior notes (Caa2/CCC+) at par to yield 6 3/8% on Friday, according to a syndicate source.
The yield printed in the middle of the 6¼% to 6½% yield talk.
Morgan Stanley & Co. LLC, Jefferies LLC, KKR, Nomura and MCS Capital Markets were the joint bookrunners.
Proceeds will be used to help fund the leveraged buyout of Air Medical by Kohlberg Kravis Roberts & Co. LP from Bain Capital and Brockway Moran & Partners.
The issuing entity is Air Medical Merger Sub Corp., which is to be merged with and into Air Medical Holdings, Inc., a Lewisville, Texas-based provider of air ambulance services.
| Issuer: | Air Medical Merger Sub Corp., to be merged with and into Air Medical Group Holdings, Inc.
|
| Amount: | $370 million
|
| Maturity: | May 15, 2023
|
| Securities: | Senior notes
|
| Bookrunners: | Morgan Stanley & Co. LLC, Jefferies LLC, KKR, Nomura, MCS Capital Markets
|
| Coupon: | 6 3/8%
|
| Price: | Par
|
| Yield: | 6 3/8%
|
| Spread: | 462 bps
|
| First call: | May 15, 2018 at 103.188
|
| Trade date: | April 17
|
| Settlement date: | April 28
|
| Ratings: | Moody's: Caa2
|
| Standard & Poor's: CCC+
|
| Distribution: | Rule 144A and Regulation S for life
|
| Price talk: | 6¼% to 6½%
|
| Marketing: | Roadshow
|
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