Rural/Metro to sell $190 million high-yield bonds in two tranches via Citigroup

By Paul A. Harris

St. Louis, Feb. 9 - Rural/Metro Corp. plans to sell $190 million of high-yield bonds in two parts via Citigroup, according to a company spokesman.

The Rule 144A/Regulation S offering includes $140 million of 10-year senior subordinated notes (Caa1/CCC+) and $50 million proceeds of 11-year senior discount notes (Caa2/CCC+).

The company will also obtain a $155 million credit facility.

Proceeds will be used to help finance the company's tender for its $150 million of 7 7/8% senior notes due 2008 and to repay about $153 million of outstanding revolver debt.

The source from the company declined to provide specific timing on the bond deal but said that the bonds would likely hit the market prior to the March 3 expiration of the tender offer.

Rural/Metro is a Scottsdale, Ariz., ambulance company.

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