ServiceMaster buys back 10¾%/11½% notes at discount

By Jennifer Chiou

New York, April 1 - ServiceMaster Co. made open-market purchases of its 10¾%/11½% senior toggle notes maturing in 2015 at a discount, retiring some of those notes, according to a 10-K filed with the Securities and Exchange Commission.

At Sept. 30, 2008, there was $1.15 billion of the notes outstanding.

Since then, ServiceMaster said it completed open-market purchases totaling $54 million face value of the notes at a cost of $16.9 million during the fourth quarter of 2008. Those acquired notes have not been retired.

In January, the company made additional open-market purchases of $11 million face value of the notes for $4.5 million. During the first quarter of 2009, ServiceMaster completed $89 million of open-market purchases for a cost of $41 million.

Notes acquired during the first quarter have been retired, and the company said that it expects to record a gain on the debt extinguishment of about $48 million pre-tax.

ServiceMaster is a Downers Grove, Ill., provider of services to residential and commercial customers, including lawn care and landscape maintenance, termite and pest control, home warranties, disaster response and reconstruction, cleaning and disaster restoration, house cleaning, furniture repair and home inspection.

© 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.