Rural/Metro plans $415 million credit facility, $200 million notes

By Sara Rosenberg

New York, April 18 - Rural/Metro Corp. revealed in a PREM14A filed with the Securities and Exchange Commission on Monday that its buyout financing is expected to include a $415 million senior secured credit facility and $200 million of senior unsecured notes.

The credit facility consists of a $315 million seven-year term loan and a $100 million five-year revolver.

And, the notes are backed by a commitment for a $200 million senior unsecured bridge loan.

Credit Suisse Securities (USA) LLC, Citigroup Global Markets Inc. and Jefferies & Co. are the lead banks on the financing.

A bank meeting for the credit facility is anticipated to occur sometime in May.

Proceeds will be used to help fund the acquisition of the company by Warburg Pincus for $17.25 per share in cash and to refinance existing debt. The revolver will be used for general corporate purposes.

Other funds for the transaction will come from $218 million of equity.

Closing on the transaction is expected to take place by the end of June, subject to customary conditions and regulatory approvals.

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

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