By Paul A. Harris
Portland, Ore., Sept. 25 - Emergency Medical Services Corp. priced a $450 million issue of five-year senior PIK toggle notes (Caa1/B-) at 97 on Monday, according to a market source.
The notes came with a cash coupon of 9¼% and a PIK coupon of 10%. The cash yield is 10.028%, and the PIK yield is 10.589%.
The cash and PIK coupons came on top of coupon talk. The reoffer price came at the cheap end of the 97 to 98 price talk. The cash yield came at the wide end of cash yield talk set in the 9 7/8% area. The PIK yield came in line with PIK yield talk of in the 10½% area.
Bank of America Merrill Lynch, Morgan Stanley & Co. LLC, Barclays and Deutsche Bank Securities Inc. were the joint bookrunners.
Proceeds will be used to fund a one-time dividend to shareholders.
Emergency Medical Services is a Greenwood Village, Colo.-based provider of health care transportation services and outsourced physician services to health care facilities.
| Issuer: | CDRT Holding Corp. (Emergency Medical Services Corp.)
|
| Face amount: | $450 million
|
| Proceeds: | $436.5 million
|
| Maturity: | Oct. 1, 2017
|
| Securities: | Senior PIK toggle notes
|
| Bookrunners: | Bank of America Merrill Lynch, Morgan Stanley & Co. LLC, Barclays, Deutsche Bank Securities Inc.
|
| Cash coupon: | 9¼%
|
| PIK coupon: | 10%
|
| Price: | 97
|
| Cash yield: | 10.028%
|
| PIK yield: | 10.589%
|
| Spread: | 936 bps
|
| Call protection: | Two years
|
| Trade date: | Sept. 24
|
| Settlement date: | Oct. 1
|
| Ratings: | Moody's: Caa1
|
| Standard & Poor's: B-
|
| Distribution: | Rule 144A for life
|
| Price talk: | 9¼% cash coupon/10% PIK coupon at 97 to 98, to yield 9 7/8% area cash/10½% area PIK
|
| Marketing: | Roadshow
|
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