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(NYSE: GMRS) is repricing its $2.9 billion Term Loan B by 50 basis points and paying down $200 million of the facility, targeting approximately $28 million in annual interest savings. The case for the move is clean.
The complication is that $2.7 billion of first-lien debt remains on the books when the transaction closes, which means the story is about the pace of deleveraging, not a structural balance sheet shift.
Global Medical Response, Inc., the borrower under the existing facility due October 2032, has obtained binding commitments to move the applicable spread from SOFR plus 325 basis points to SOFR plus 275 basis points.
The Lewisville, Texas-based company expects to use approximately $200 million of cash on hand to simultaneously pay down outstanding borrowings, reducing the outstanding principal to approximately $2.7 billion.
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