FOR: RURAL/METRO CORPORATION
Rural/Metro Announces Commencement of Tender Offer and Consent Solicitation for Its 9.875% Senior Subordinated Notes Due 2015
NOV 6, 2009 - 07:00 ET
SCOTTSDALE, AZ--(Marketwire - November 6, 2009) - Rural/Metro Corporation (NASDAQ: RURL), a
leading provider of ambulance and private fire protection services, today
is launching a tender offer and consent solicitation for its outstanding
9.875% Senior Subordinated Notes due 2015 (the "Notes").
The Company is offering to purchase any and all of the outstanding Notes.
The Company also is soliciting consents to certain proposed amendments to
the indenture governing the Notes. The tender offer and consent
solicitation are being made by Rural/Metro Operating Company, LLC and
Rural/Metro (Delaware) Inc. pursuant to an offer to purchase and consent
solicitation statement and a related letter of transmittal, each dated as
of November 6, 2009. The tender offer will expire at midnight, New York
City time, on December 7, 2009, unless extended (the expiration date).
Payment for the Notes validly tendered and the consents validly delivered
will be made on a date promptly following the expiration date (the payment
date). A consent payment will be paid to holders who tender Notes and
deliver consents on or prior to 5:00 p.m., New York City time, on November
20, 2009 (the consent date), unless extended.
The proposed amendments would eliminate or modify substantially all of the
restrictive covenants and certain events of default contained in the
indenture governing the Notes. Holders who tender their Notes will be
required to consent to the proposed amendments, and holders who consent to
the proposed amendments will be required to tender their Notes.
The purchase price per $1,000 principal amount of Notes to be paid for each
validly tendered Note will be (1) the redemption price of the Notes plus
scheduled interest to March 15, 2010 (the first optional redemption date
with respect to the Notes) discounted based on a yield to March 15, 2010
that is equal to the sum of (i) the yield on the 4.00% U.S. Treasury note
due March 15, 2010, and (ii) a fixed spread of 50 basis points, less (2) an
amount equal to the consent payment. In addition, accrued and unpaid
interest will be paid on the tendered Notes up to but not including the
payment date. The purchase price for the Notes will be set at 2:00 p.m.,
New York City time, on December 3, 2009, unless the expiration date is
extended.
A consent payment of $20 per $1,000 of principal amount of Notes will be
paid on the payment date to holders who tender their Notes and provide
their consents to the proposed amendments prior to the consent date. Notes
tendered and consents delivered prior to the consent date may not be
withdrawn or revoked after that time. Holders of Notes tendered after the
consent date will not receive a consent payment.
The tender offer and the consent solicitation are contingent upon, among
other things, the tender of at least a majority of the outstanding
principal amount of the Notes and the refinancing of the Company's credit
facility due 2011, as previously announced on October 20, 2009. The
Company may amend, extend or terminate the tender offer and consent
solicitation at its sole discretion.
The Company also announces that the previously announced consent
solicitation for the Notes expired on November 3, 2009 and that it is
terminating the tender offer and consent solicitation for its 12.75% Senior
Discount Notes due 2016.
This press release does not constitute an offer to purchase any Notes or a
solicitation of consents. Any offer to purchase the Notes or solicitation
of consents will be made by means of an offer to purchase and consent
solicitation statement and related letter of transmittal. No offer,
solicitation or purchase will be made in any jurisdiction in which such an
offer, solicitation or purchase would be unlawful. Persons with questions
regarding the tender offer or solicitation should contact the dealer
manager and solicitation agent, RBC Capital Markets Corporation at (212)
618-2205 or the Information Agent, Global Bondholder Services Corporation
at (866) 794-2200 (toll free).
About Rural/Metro Corporation
Rural/Metro Corporation provides emergency and non-emergency ambulance
services and private fire protection services in 22 states and
approximately 400 communities throughout the United States. For more
information, visit the Rural/Metro Corporation's web site at
www.ruralmetro.com.
Safe Harbor Statement under the Private Securities Litigation Reform Act of
1995
This press release includes forward-looking statements within the meaning
of the Private Securities Litigation Reform Act of 1995. Words such as
"will," "believes," "seeks," "anticipates," "intends," "estimates,"
"expects," "projects," "plans," and similar expressions are intended to
identify forward-looking statements. All statements that address operating
performance, events or developments that we expect or anticipate will occur
in the future, including statements relating to the consent solicitation
and the concurrent tender offer and consent solicitation by Rural/Metro
Corporation and any financing related thereto, growth, expected levels of
expenditures and statements expressing general optimism about future
operating results, are forward-looking statements. Similarly, statements
that describe the Company's business strategy, outlook, objectives, plans,
intentions or goals also are forward-looking statements. All such
forward-looking statements and those presented elsewhere by the Company's
management from time to time are subject to certain risks and uncertainties
that could cause actual results to differ materially from those in
forward-looking statements. See risks and uncertainties described in "Risk
factors" included in the Annual Report on Form 10-K for the fiscal year
ended June 30, 2009, filed with the Securities and Exchange Commission
("SEC") on September 9, 2009. A copy of all SEC filings may be obtained
from the SEC's EDGAR web site at www.sec.gov, or the Company's web site at
www.ruralmetro.com.
(RURL/F)
FOR FURTHER INFORMATION PLEASE CONTACT:
CONTACT:
Liz Merritt
Rural/Metro Corporation (investors)
(480) 606-3337
Sharrifah Al-Salem, FD
(415) 293-4414
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