Rural/Metro tenders for 7 7/8% notes

New York, Feb. 3 - Rural/Metro Corp. said it has begun a cash tender offer and consent solicitation for any and all of its $150 million principal amount of 7 7/8% senior notes due 2008.

The Scottsdale, Ariz., provider of emergency and non-emergency medical transportation, fire protection and other safety services is also soliciting consents to amendments to the note indenture that would 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 who tender by the consent deadline of 5 p.m. ET on Feb. 16 will receive $1,017.00 per $1,000 principal amount including a consent payment of $20.00 per $1,000 principal amount. Noteholders who tender after the consent date will not receive the consent payment.

The tender ends at 11:59 p.m. ET on March 3.

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

The offer is subject to the tenders of at least a majority of the outstanding notes and the company raising enough financing to fund the tender and the redemption of any notes not tendered.

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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