Emergency Medical Said to Seek Lower Rate on $1.17 Billion LoanMichael Amato
Emergency Medical Services Corp. lower the rate it will pay on a $1.17 billion covenant-lite term loan, according to a person with knowledge of the transaction.
The interest on the debt, maturing in 2018, will be reduced to 3 percentage points more than the London interbank offered rate and be sold at par, said the person, who asked not to be identified because the information is private. Libor, a rate banks say they can borrow in dollars from each other, will have a 1.25 percent floor.
The company is also seeking a $150 million add-on term loan to repay drawings under its asset-based revolving line of credit, according to the person. The add-on term piece will pay interest at 3 percentage points more than Libor with a 1.25 percent floor and will be sold at 99.75 cents on the dollar to par, the person said.
Deutsche Bank AG, Barclays Plc, Bank of America Corp., Morgan Stanley, Royal Bank of Canada and UBS AG are arranging the transaction and commitments are due by 5 p.m. on Jan. 31 in New York, the person said. The debt is rated Ba3 by Moody’s Investors Service and B+ by Standard & Poor’s.
Emergency Medical Services existing term loan pays interest at 3.75 percentage points more than Libor with a 1.5 percent floor, according to data compiled by Bloomberg. The debt was sold to investors at 99.5 cents and was quoted at 101.125 cents today, the data show.
Clayton Dubilier & Rice LLC purchased the Greenwood Village, Colorado-based ambulance operator for approximately $2.99 billion in 2011, Bloomberg data show.