Rural/Metro talks $425 million credit facility at Libor plus 400 bps

By Sara Rosenberg

New York, May 31 - Rural/Metro Corp. is talking its $425 million senior secured credit facility (B) at Libor plus 400 basis points with a 1.5% Libor floor and an original issue discount of 99, according to a market source.

The facility, which is set to launch with a bank meeting on Wednesday morning, consists of a $100 million five-year revolver and a $325 million seven-year term loan.

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

Proceeds, along with $213 million of equity and $200 million of notes, 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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