Rural/Metro to roadshow $190 million two-part notes offering

By Paul A. Harris

St. Louis, Feb. 15 - Rural/Metro Corp. will launch its $190 million two-part offering of high-yield notes in a roadshow beginning Thursday, according to an informed source.

Pricing is expected early in the week of Feb. 28.

At the operating company level, Rural/Metro Operating Co. LLC is offering $140 million of 10-year senior subordinated notes (Caa1/CCC+), which are non-callable for five years.

Meanwhile, at the holding company level, Rural Metro Delaware Inc. is offering $50 million proceeds of 11-year senior PIK-for-life discount notes (Caa2/CCC+), which are non-callable for five years.

Citigroup is the bookrunner for the Rule 144A/Regulation S offering.

The company will also obtain a new senior secured credit facility comprised of a $120 million term loan B and a $20 million revolving credit facility.

Proceeds will be used to help fund the tender for $150 million of the company's 7 7/8% senior notes due 2008 and to repay $153 million of outstanding revolver debt.

Rural/Metro is a Scottsdale, Ariz., provider of emergency and non-emergency medical transportation, fire protection and other safety services.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.