Air Methods gets final approval of $155 million DIP loan package

By Sarah Lizee

Olympia, Wash., Nov. 16 – Air Methods Corp. received final approval of a $155 million 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 obtained commitments for $80 million of new-money DIP financing from the first-lien lenders party to the RSA. The DIP financing also includes $75 million of prepetition debt following the final order.

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

There is a backstop premium of 8%.

The financing has a four-month maturity.

The company said the 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.

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

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