Rural/Metro sets Tuesday call for $95 million tap of 10 1/8% notes

By Paul A. Harris

Portland, Ore., Jan. 30 - Rural/Metro Corp. plans to host an investor call at 10 a.m. ET on Tuesday for a $95 million non-fungible add-on to its 10 1/8% senior notes due 2019 (existing Caa1/confirmed CCC+), according to an informed source.

Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC and RBC Capital Markets are the joint bookrunners.

The Rule 144A and Regulation S for life add-on notes are callable with a make-whole call at Treasuries plus 50 bps until July 15, 2015 and then become callable at 105.063.

The add-on notes come with the same covenants as the notes of the existing issue.

Proceeds will be used to finance the acquisition of Professional Medical Transport and Pacific Bowers, as well as to pay down the revolver debt and for general corporate purposes.

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

The original $200 million issue priced at par on June 24, 2011.

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