ServiceMaster Global Prices IPO At $17 Per Share

(RTTNews) - ServiceMaster Global Holdings Inc., a provider of essential residential and commercial services, announced that it has priced an initial public offering of 35.90 million shares of common stock at $17 a share.

The shares are expected to begin trading on the New York Stock Exchange Thursday under the ticker symbol SERV.

The company has granted the underwriters a 30-day option to purchase up to an additional 5.385 million shares of common stock.

The company noted that it intends to use the net proceeds of the offering (i) to redeem (a) $210 million of the outstanding principal of the 8% senior notes due 2020 issued by its subsidiary, The ServiceMaster Company, LLC or "SvM", at a redemption price equal to 108% of the principal amount thereof, plus accrued interest and (b) $262.5 million of the outstanding principal of SvM's 7% senior notes due 2020 issued at a redemption price equal to 107% of the principal amount thereof, plus accrued interest; (ii) to pay certain shareholders consulting termination fees of $21 million; and (iii) to repay borrowings under SvM's existing term loan facility with any remaining proceeds.