EMSC $1.725 billion loan, $950 million notes expected March business

By Sara Rosenberg

New York, Feb. 23 - Emergency Medical Services Corp. (EMSC) is expected to launch a $1.725 billion credit facility and $950 million of senior unsecured notes in March, according to a market source.

The notes are backed by a commitment for a bridge loan, and that bridge is actually being launched to investors with a conference call on Thursday, the source said.

Barclays Capital, Deutsche Bank Securities Inc., Bank of America Merrill Lynch, Morgan Stanley, RBC Capital Markets and UBS Investment Bank are the lead banks on the financing, with Barclays the left lead on the bridge loan and notes and Deutsche the left lead on the credit facility.

The credit facility consists of a $350 million ABL revolver and a $1.375 billion term loan, the source continued.

He heard that the bank meeting for the facility is being eyed for the week of March 7, and the notes would likely launch shortly thereafter. Timing, however, is still very fluid and nothing official has been set.

Proceeds from the financing, along with equity, will be used to fund the buyout of the company by Clayton, Dubilier & Rice LLC for $64 in cash per share of common stock and exchangeable unit. The transaction is valued at $3.2 billion.

Marketing the bridge loan now serves a variety of purposes, including pre-marketing on the expected bond offering and providing insurance that if the market takes a turn for the worse and the bonds can't get done, the buyout can close as expected with the funds from the bridge loan, the source explained.

Closing on the acquisition is expected in the second quarter, subject to customary conditions, including regulatory approvals and approval by the company's stockholders. Onex Corp., the holders of the company's LP exchangeable units, have sufficient voting power to approve the buyout and have agreed to vote in favor of adoption of the agreement.

EMSC is a Greenwood Village, Colo.-based provider of health care transportation services and outsourced physician services to health care facilities.

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