Rural/Metro tenders for and seeks consents to amend its 12¾% notes

By Devika Patel

Knoxville, Tenn., Oct. 18 - Rural/Metro Corp. has begun a tender offer for all of its 12¾% senior discount notes due 2016, according to a company news release.

Rural/Metro is also soliciting consents to adopt some amendments to the notes' indenture to eliminate or modify substantially all restrictive covenants and some event-of-default provisions.

The offer is scheduled to expire at midnight ET on Nov. 23.

The company is offering $1,066.25 per $1,000 of tendered notes, which includes a consent payment of $30.00 per $1,000 of notes for those who tender by the consent deadline of 5 p.m. ET on Oct. 29. All other tenders will receive $1,036.25. Holders will also receive accrued interest up to but excluding the payment date.

The offer and consent solicitation are contingent upon at least a majority of the outstanding notes being tendered, the successful refinancing of the notes and Rural/Metro Operating Co. LLC, the company's subsidiary, refinancing its credit facility.

The tender offer and consent solicitation are part of the company's intended refinancing of its long-term debt to take advantage of favorable conditions in the current debt markets. The company said that this refinancing is expected to lower its overall cost of capital, extend maturities and reduce annual interest expense.

RBC Capital Markets Corp. (877 381-2099 or 212 618-7822) is the dealer manager and solicitation agent. Global Bondholder Services Corp. (866 540-1500 or 212 430-3774) is the information agent.

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

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