Bain Takes $200M Dividend On Air Medical

Target: Air Medical Group Holdings

Price: $200 million

Sponsor: Bain Capital

Bain Capital is getting some of its money back on Air Medical Group Holdings, sister website peHUB reported.

Air Medical, an emergency transportation company, has launched a new $200 million unsecured PIK toggle term loan, according to sister service Thomson Reuters Loan Pricing Corp. Air Medical will use the proceeds to pay a dividend to shareholders, LPC and Moody’s Investors Service said.

Bain acquired Air Medical in 2010 for about $1 billion. The sellers were Brockway Moran & Partners and MVP Capital Partners. MVP still retains a stake. Bain invested $461.1 million in the deal, according to an October 2010 SEC filing. The Boston buyout firm owns a majority in Air Medical, Moody’s reported.

Air Medical bought Reach Medical Holdings in December. Air Medical used $245 million in debt, along with existing cash on hand, to fund the buy, Moody’s said. Lewisville, Texas-based Air Medical operates through five subsidiaries: Air Evac Lifeteam, Med-Trans Corp., EagleMed, Reach Air Medical Services and AirMed Care. The company, as of March, operated a fleet of 244 helicopters and airplanes. Air Medical generated about $561 million in revenue for the 12 months ended March 31, Moody’s said.

Moody’s said Air Medical’s ‘B2’ Corporate Family Rating reflects the company’s high pro-forma leverage of about 6x. Moody’s said it expects Air Medical’s leverage to remain above 5x over the next 12 to 18 months. “Air Medical’s ratings could be downgraded if the company continues an aggressive pace of financial policies and shareholder-friendly initiatives, if the company undertakes a significant acquisition which increases execution risks, or if leverage increases such that debt-to-EBITDA leverage increases above 6.0 times on a sustained basis,” Moody’s said.

Bain officials declined comment. Air Medical couldn’t be reached for comment.

Luisa Beltran is a senior writer for peHUB.