Nov 23 2009
Rural/Metro Corporation (NASDAQ: RURL), a leading provider of ambulance and private fire protection services, today announced that, pursuant to the terms of its previously announced tender offer and consent solicitation for its outstanding 9.875% Senior Subordinated Notes due 2015 (the "Notes"), holders of $121 million aggregate principal amount of the outstanding Notes (approximately 96.8%) have validly tendered their Notes and have validly delivered the requisite consents for the proposed amendments prior to the expiration of the consent date which was 5:00 pm, New York City time, on November 20, 2009.
The consents received exceed the number needed to approve the proposed amendments to the indenture governing the Notes. The terms of the tender offer and consent solicitation are detailed in the Company's offer to purchase and consent solicitation statement and related letter of transmittal, each dated as of November 6, 2009.
Based on the consents received, the Company and the trustee under the indenture are expected to enter into a supplemental indenture that will, once operative, eliminate or modify substantially all of the restrictive covenants and certain events of default contained in the indenture governing the Notes. The supplemental indenture will not become operative unless and until the Notes are accepted for purchase, which, subject to the satisfaction of the conditions set forth in the offer to purchase and consent solicitation, is expected to occur promptly following the acceptance of notes for payment on December 7, 2009. The Company's acceptance of the Notes tendered is conditional on among other things, the refinancing of the Company's credit facility due 2011, as previously announced on October 20, 2009.
Notes tendered and consents delivered pursuant to the tender offer and consent solicitation may no longer be withdrawn or revoked. Holders of Notes tendered after the consent date will not receive a consent payment.
The tender offer and consent solicitation will remain open for an additional 10 business days and will expire at 12:00 midnight, New York City time, on December 7, 2009, unless extended, and, subject to the satisfaction of the conditions set forth in the offer to purchase and consent solicitation, the Company expects to accept for purchase and settle all Notes tendered on December 9, 2009.