Rural/Metro launches $175 million facility at Libor plus 425-450 bps

By Sara Rosenberg

New York, Oct. 20 - Rural/Metro Corp. launched its $175 million secured credit facility (Ba1) on Wednesday with price talk of Libor plus 425 basis points to 450 bps, according to a market source.

The facility consists of a $75 million term loan and a $100 million revolver.

The term loan has a 1.75% Libor floor and is being offered at an original issue discount of 99 to 991/2, the source said.

The revolver has a 75 bps upfront fee and a 75 bps commitment fee.

RBC Capital Markets is the lead bank on the deal.

Proceeds will be used, along with $200 million of senior notes, to refinance the company's existing senior secured revolver, term loan and letter-of-credit facilities, to fund a tender offer for its senior discount notes, to pay off cash collateralized letters of credit, and for working capital and general corporate purposes.

Rural/Metro is a Scottsdale, Ariz.-based provider of medical ambulance response services.

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