Rural/Metro holders tender 96.8% of 9 7/8% notes by early tender date

By Susanna Moon

Chicago, Nov. 23 - Rural/Metro Corp. holders tendered $121 million principal amount, or 96.8%, of the company's 9 7/8% senior subordinated notes due 2015 by 5 p.m. ET on Nov. 20, the consent date.

Rural/Metro said it received enough consents to approve the proposed amendments to the notes.

The company said it expects to enter into a supplemental indenture.

A tender offer and consent solicitation for the notes are being made by Rural/Metro Operating Co., LLC and Rural/Metro (Delaware) Inc. under a statement dated Nov. 6.

The tender offer will expire at midnight ET on Dec. 7.

Rural/Metro is soliciting consent to amend the notes to eliminate or modify substantially all of the restrictive covenants and events of default contained in the indenture.

Holders who tendered their notes are required to consent to the proposed amendments and vice versa.

For each $1,000 principal amount, the company will pay a purchase price discounted based on a yield to March 15, 2010 that is the sum of the yield on the 4% U.S. Treasury note due March 15, 2010 and a fixed spread of 50 basis points.

The payout will include a $20 premium for notes tendered by the consent date.

The company also will pay accrued interest up to but excluding the payment date.

The purchase price for the notes will be set at 2 p.m. ET on Dec. 3.

The tender offer and the consent solicitation are contingent upon the tender of at least a majority of the outstanding principal amount of the notes and the refinancing of the company's credit facility due 2011, as previously announced on Oct. 20.

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