New Issue: ServiceMaster upsizes to $500 million, prices eight-year notes at par to yield 8%

By Paul A. Harris

Portland, Ore., Feb. 2 - ServiceMaster Co. priced an upsized $500 million issue of eight-year notes (B3/B-/) at par to yield 8% on Thursday, according to an informed source.

The yield printed on top of price talk, which had been revised downward from earlier talk in the 8¼% area.

J.P. Morgan Securities LLC, Credit Suisse Securities (USA) LLC, Morgan Stanley & Co. LLC, Barclays Capital Inc., Deutsche Bank Securities Inc., Goldman Sachs & Co., Citigroup Global Markets Inc. and Natixis managed the deal, which was upsized from $400 million.

The Memphis, Tenn.-based lawn care and pest control company plans to use the proceeds to redeem a portion of its 10¾% senior notes due 2015.

Issuer:	ServiceMaster Co.
Amount:	$500 million, upsized from $400 million
Maturity:	Feb. 15, 2020
Securities:	Senior notes
Managers:	J.P. Morgan Securities LLC, Credit Suisse Securities (USA) LLC, Morgan Stanley & Co. LLC, Barclays Capital Inc., Deutsche Bank Securities Inc., Goldman Sachs & Co., Citigroup Global Markets Inc., Natixis
Coupon:	8%
Price:	Par
Yield:	8%
Call protection:	Three years
Trade date:	Feb. 2
Ratings:	Moody's: B3
	Standard & Poor's: B-
Distribution:	Rule 144A and Regulation S with registration rights
Price talk:	8%, revised lower from 8¼% area
Marketing:	Roadshow

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