Rural/Metro ups spread on $425 million facility to Libor plus 425 bps

By Sara Rosenberg

New York, June 16 - Rural/Metro Corp. raised pricing on its $425 million senior secured credit facility (B) to Libor plus 425 basis points from Libor plus 400 bps, according to a market source.

The 1.5% Libor floor and original issue discount of 99 were left unchanged, the source said.

The facility consists of a $100 million five-year revolver and a $325 million seven-year term loan.

Commitments towards the revised deal were due at 5 p.m. ET on Thursday.

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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