SOURCE: Rural/Metro Corporation

Rural/Metro Corporation

October 18, 2010 07:00 ET

Rural/Metro Announces Intent to Commence $200 Million Private Debt Offering

SCOTTSDALE, AZ--(Marketwire - October 18, 2010) - Rural/Metro Corporation (NASDAQ: RURL) announced today that its wholly owned subsidiaries, Rural/Metro Operating Company, LLC and Rural/Metro (Delaware) Inc., intend to commence a private offering to eligible purchasers, subject to market and other conditions, of $200 million principal amount of Senior Notes due 2018 (the "Notes"), and intend to negotiate a $175 million secured financing to replace its existing senior secured revolving credit, term loan and letter of credit facilities. The Company intends to use the net proceeds from the Notes offering, together with borrowings under its new credit facility, (i) to refinance outstanding indebtedness under its existing credit facility and to refinance by means of a debt tender offer Rural/Metro Corporation's outstanding Senior Discount Notes due 2016, (ii) to pay related fees and expenses, (iii) to pay-off cash collateralized letters of credit and (iv) for working capital and general corporate purposes.

The Notes to be offered by Rural/Metro Operating Company, LLC and Rural/Metro (Delaware) Inc. will not be registered under the Securities Act of 1933, as amended (the "Securities Act"), and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements under the Securities Act and applicable state securities laws. This press release shall not constitute an offer to sell or a solicitation of an offer to buy such Notes and is issued pursuant to Rule 135c under the Securities Act.

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 "believes," "seeks," "anticipates," "intends," "estimates," "expects," "projects," "plans" or similar expressions or variations of such words 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 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 Company's Annual Report on Form 10-K for the fiscal year ended June 30, 2010, filed with the Securities and Exchange Commission ("SEC") on September 8, 2010. A copy of all SEC filings may be obtained from the SEC's EDGAR web site at


Contact Information

    Liz Merritt
    Rural/Metro Corporation (investors)
    (480) 606-3337
    Sharrifah Al-Salem, FD
    (415) 293-4414