Rural/Metro eyes next week for launch of new credit facility

By Sara Rosenberg

New York, May 23 - Rural/Metro Corp. is looking to hold a bank meeting during the week of May 30 to launch its proposed senior secured credit facility, a market source told Prospect News. Firm timing, however, has not yet been set.

According to filings with the Securities and Exchange Commission, the deal is sized at $415 million, comprised of a $315 million seven-year term loan and a $100 million five-year revolver.

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

Proceeds, along with notes and equity, will be used to 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.

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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