Air Methods gets access to $40 million of DIP loan package

By Sarah Lizee

Olympia, Wash., Oct. 25 – Air Methods Corp. received interim approval to access $40 million of new money under a proposed debtor-in-possession financing package, according to an order filed Tuesday with the U.S. Bankruptcy Court for the Southern District of Texas.

As a reminder, the company entered into a restructuring support agreement with most of its first-lien lenders and bondholders and its equity sponsor, American Securities, LLC.

As part of the process, Air Methods has obtained commitments for $80 million of new-money DIP financing from the first-lien lenders party to the RSA. The DIP financing will also include $75 million of prepetition debt following a final order.

Wilmington Savings Fund Society, FSB will be the administrative agent on the facility, which is set to bear interest at term SOFR plus a credit spread adjustment of 11.448 bps (subject to a 1% floor) plus 1,000 bps.

There will be a backstop premium of 8%.

The financing has a four-month maturity.

The company said the new financing will provide enough liquidity to support the company’s financial obligations and day-to-day operations during the process, including the payment of employee wages and benefits, suppliers, partners and vendors in the ordinary course of business.

A final hearing is scheduled for Nov. 15.

The Denver-based air medical service provider filed Chapter 11 bankruptcy on Oct. 24 under case number 23-90886.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.