By Lisa Kerner
Charlotte, N.C., July 22 - Davey Tree Expert Co. sold $30 million of 5.09% senior unsecured notes, series A, due 2020 to Modern Woodmen of America and United of Omaha Life Insurance Co., according to a form 8-K filed with the Securities and Exchange Commission.
Subsequent series of promissory notes may be issued under supplemental note purchase agreements in a total additional principal amount not to exceed $20 million, the filing said.
The notes are guaranteed by Davey Tree Surgery Co., Wolf Tree, Inc. and Care of Trees, Inc.
The company will make five equal, annual principal payments beginning on the sixth anniversary of issuance.
The make-whole call is at Treasuries plus 50 basis points.
Proceeds will be used for general corporate purposes and to pay down borrowings under Davey Tree's existing revolving credit facility.
Davey Tree is a Kent, Ohio, tree service.
| Issuer: | Davey Tree Expert Co.
|
| Issue: | Senior unsecured notes
|
| Amount: | $30 million
|
| Maturity: | July 22, 2020
|
| Coupon: | 5.09%
|
| Distribution: | Private placement
|
| Settlement date: | July 22
|
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