RBC to Launch Rural/Metro Facility Next Week
November 9, 2009
The Royal Bank of Canada will launch a $190 million credit facility for Rural/Metro Corp. next week. RBC began arranging the deal in October (LFN, Oct. 22, 2009).
The credit facility consists of a five-year $150 million term loan and a four-year $40 million revolver, with a $25 million letter of credit. Price talk is at Libor plus 525 bps, with an OID of 98.
The proceeds from the facility will be used to repay all of the company's $85.7 million in 12.75% senior notes at 103 to 104 cents on the dollar, as well as $66 million the company still owes under a $135 million term loan maturing 2011. Rural/Metro also has $125 million in outstanding 9.875% senior subordinated notes due 2015.
The $190 million facility for the Scottsdale, Ariz.-based provider of emergency medical transportation and fire protection services is rated Ba2 by Moody’s Investors Service.
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