Rural/Metro amends loan, allowing for equity proceeds to be used for note repurchases

By Sara Rosenberg

New York, Dec. 28 - Rural/Metro Operating Co. LLC amended its credit facility, allowing for the use of equity issuance proceeds to repurchase its 12¾% senior discount notes due 2016 or its 9 7/8% senior subordinated notes due 2015, according to an 8-K filed with the Securities and Exchange Commission.

Furthermore, under the amendment, the company can use up to $10 million of cash on hand to buy its discount notes if all the outstanding discount notes are being repurchased.

However, following a redemption of the discount notes, the company's total leverage ratio may not exceed 4.0 to 1.0.

In addition, the amendment increased the permitted acquisitions cap to $40 million and the per acquisition cap to $10 million.

The amendment is effective as of Dec. 27.

Citigroup is the administrative agent on the deal.

Rural/Metro is a Scottsdale, Ariz.-based provider of medical transportation and private fire protection services.

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