(Bloomberg) -- KKR & Co. is preparing to refinance more than $4 billion of debt of medical transport provider Global Medical Response Inc. by persuading creditors to accept longer-dated debt and by issuing new preferred stock, according to a person familiar with the arrangements. 

More than 80% of the existing lenders and bondholders support the proposal, and the company will hold a call with lenders April 18, said the person, who asked not to be named discussing private company plans. 

The deal includes a $3.6 billion amended and extended first lien term loan, $600 million in new senior secured bonds, and $948 million in new preferred equity to be paid in kind. 

The company has outstanding approximately $3.8 billion in term loan B debt and $600 million in senior secured bonds, according to data compiled by Bloomberg.

Representatives from KKR declined to comment and Global Medical did not respond to a request for comment. 

Moody’s Ratings on Wednesday upgraded the company to B3, citing on the proposed transaction, after having slashed its rating to Caa2 in May based on its increasingly unsustainable debt load.

Commitments from lenders participating in the extension are due by April 29. A group of creditors to the company has been advised by PJT Partners Inc. and Gibson Dunn & Crutcher, Bloomberg previously reported.

GMR’s net revenue rose 7.5% in the fourth quarter of 2023, to around $1.4 billion from around $1.3 billion the prior year, according to another person with knowledge of the company’s financial results. An adjusted measure of earnings before interest, taxes, depreciation and amortization showed earnings of $265 million, up almost 70% from $156 million the prior year.

In the third quarter, its net revenue and earnings were also up, Bloomberg previously reported.

--With assistance from Reshmi Basu.

(Updates to add new credit rating from Moody’s in sixth paragraph and earnings results in eighth and ninth paragraphs.)

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