By Paul A. Harris
Portland, Ore., Feb. 1 - Rural/Metro Corp. priced $108 million of notes mirroring its existing 10 1/8% senior notes due July 15, 2019 at 86 to yield 13 1/8% on Wednesday, according to an informed source.
The reoffer price came at the rich end of the 85 to 86 price talk.
Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC and RBC Capital Markets were the joint bookrunners.
The mirror notes, which are not fungible with the original $200 million issue that priced at par on June 24, 2011, do however come with the same covenants as those original notes.
Moody's Investors Service assigns its Caa1 rating to the mirror notes. Standard & Poor's rates the mirror notes at CCC+.
Proceeds will be used to finance the acquisition of Professional Medical Transport and Pacific Bowers, as well as to pay down 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.
| Issuer: | Rural/Metro Corp.
|
| Face amount: | $108 million
|
| Proceeds: | $92.88 million
|
| Maturity: | July 15, 2019
|
| Security description: | Non-fungible add-on to 10 1/8% senior notes due July 15, 2019
|
| Bookrunners: | Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, RBC Capital Markets
|
| Coupon: | 10 1/8%
|
| Price: | 86
|
| Yield: | 13 1/8%
|
| Call features: | Make-whole call at Treasuries plus 50 bps until July 15, 2015, then callable at 105.063, 102.531, par on and after July 15, 2017
|
| Equity: | 35% at 110.125 until July 15, 2014
|
| Change-of-control put: | 101%
|
| Trade date: | Feb. 1
|
| Settlement date: | Feb. 3 with accrued interest
|
| Ratings: | Moody's: Caa1
|
| Standard & Poor's CCC+
|
| Distribution: | Rule 144A and Regulation S
|
| Price talk: | 85 to 86
|
| Marketing: | Brief roadshow
|
| Original issue: | $200 million issue priced at par on June 24, 2011
|
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