Original Message

The problem is that there is very little "equity" in private equity.  They borrowed the money to buy the company.  Remember, Air Methods stock was priced around $55 per share a year prior to the purchase.  It went down to $28 (in other words, the trend was very negative).  The private "equity" group then purchased the company for about $43 per share.  You might say they overpaid and then used debt to buy the company.  Now, interest rates have increased.  What to do?