Rural/Metro launches $190 million credit facility via RBC

By Sara Rosenberg

New York, Oct. 20 - Rural/Metro Corp. held a bank meeting on Tuesday to launch a $190 million credit facility, according to a market source.

RBC is the lead bank on the deal.

The facility consists of a $40 million revolver and a $150 million term loan, with both tranches talked at Libor plus 525 basis points, with a 2% Libor floor and an original issue discount of 98, the source said.

Proceeds will be used to refinance the company's credit facility that is due in 2011.

The company also plans to launch a tender offer for its 12.75% senior discount notes due 2016.

The credit facility refinancing is a condition of the notes tender offer.

Rural/Metro is a Scottsdale, Ariz.-based provider of emergency and non-emergency ambulance services and private fire protection services.

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