Rural/Metro buys 92% of 7 7/8% notes in tender

New York, March 4 - Rural/Metro Corp. said it has completed its cash tender offer and consent solicitation for any and all of its $150 million principal amount of 7 7/8% senior notes due 2008, receiving tenders for 92% of the notes.

Both the consent solicitation and the tender ended at 11:59 p.m. ET on March 3.

As announced on Feb. 3, the Scottsdale, Ariz., provider of emergency and non-emergency medical transportation, fire protection and other safety services is tendering for the notes and soliciting consents to amend the note indenture to eliminate or modify substantially all of the restrictive covenants, certain events of default and certain other provisions. Noteholders that tender will be required to consent and vice versa.

Funding for the tender will come from part of the proceeds from a new senior secured credit facility and other debt.

Holders will receive $1,017.00 per $1,000 principal amount including a consent payment of $20.00 per $1,000 principal amount.

Rural/Metro will also pay accrued interest up to but excluding the payment date.

Citigroup Global Markets Inc. is dealer manager (800 558-3745). Global Bondholder Services Corp. is information agent (866 488-1500 or 212 430-3774).

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