Emergency Medical delays launch of $1.725 billion facility to April

By Sara Rosenberg

New York, March 16 - Emergency Medical Services Corp. has postponed the launch of its $1.725 billion credit facility, with the expectation being that the bank meeting will take place during the week of April 4, according to a market source.

Previously, a bank meeting had been set to take place on March 17 at 10 a.m. ET at the W Hotel in New York.

The source said that delay is happening because the Securities and Exchange Commission "decided to review the proxy."

Deutsche Bank Securities, Barclays Capital, Bank of America Merrill Lynch, Morgan Stanley, RBC Capital Markets, UBS Investment Bank, Natixis and Citigroup are the lead banks on the deal, with Deutsche the left lead.

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

Proceeds will be used to help 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.

Other funds for the transaction will come from $950 million of senior unsecured notes that are backed by a bridge loan commitment and up to $900 million of equity.

The notes are now expected to come to market in April as well, instead of being March business, the source added.

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.

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

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