Emergency Medical Services Corp. is driving by the red-hot high-yield market with a $450 million offering of five-year, callable senior PIK toggle notes backing a dividend to shareholders. Bank of America, Morgan Stanley, Barclays, and Deutsche Bank share the books for pricing on Friday following today’s 1:30 p.m. EDT investor call, according to sources.

This will be the third regular-way PIK-toggle offering this year, but only the second that backs a dividend, according to LCD. That deal was automotive-aftermarket-products company IDQ in July, and the two others were LBO offerings for Interline Brands and TransUnion. Of course, Mohegan also issued PIK toggle notes, but it was part of a privately negotiated reorganization.

The issuer is CDRT Holding Corp., representing the sponsor, Clayton, Dubilier & Rice, which took over the healthcare-transportation company in May 2011 in a $3.2 billion leveraged buyout. Issuance is under Rule 144A, for life, and terms include a mandatory offer to repurchase with proceeds from an initial public offering at the prevailing call price, according to sources. The call structure is as follows: year one, at 102; year two, at 102; year three, at 104; year four, at 102; and par thereafter.

Ratings are to be determined, but note the company’s LBO-related senior notes at the operating-company level carry a B-/Caa1 profile. These comprise a $950 million issue of 8.125% notes due 2019, which were issued in May 2011, at par, but are now pegged at 108, yielding about 6.125%, according to sources.

Greenwood Village, Colo.-based EMSC provides emergency medical services in the U.S. It operates two business segments: American Medical Response, the company’s healthcare-transportation unit, and EmCare Holdings, the company’s outsourced facility-based physician-services unit. – Matt Fuller

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