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Former TruGreen parent company announces launch of IPO

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ServiceMaster has commenced an initial public offering of 35,900 shares of common stock.

| June 23, 2014

MEMPHIS, Tenn. – ServiceMaster Global Holdings., a provider of  residential and commercial services and former parent company of TruGreen, today announced that it has commenced an initial public offering of 35,900 shares of common stock pursuant to a registration statement on Form S-1, as amended, filed with the U.S. Securities and Exchange Commission (SEC). The initial public offering price is currently expected to be between $18 and $21 per share of common stock, after giving effect to the two-for-three reverse stock split that became effective on June 13, 2014. The company has granted the underwriters a 30-day option to purchase up to an additional 5,385,000 shares of common stock.

The company intends to use the net proceeds of the offering after fees and expenses (i) to redeem (a) $210 million of the outstanding principal of the 8 percent senior notes due 2020 issued by its subsidiary, The ServiceMaster Co., (SvM), at a redemption price equal to 108 percent of the principal amount thereof, plus accrued interest and (b) $262.5 million of the outstanding principal of the 7% senior notes due 2020 issued by SvM, at a redemption price equal to 107 percent 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 its existing term loan facility with any remaining proceeds.

The offering is being made through an underwriting group led by J.P. Morgan Securities LLC, Credit Suisse Securities (USA) LLC, Goldman, Sachs & Co. and Morgan Stanley & Co. LLC, who are acting as joint book-running managers and as representatives of the underwriters for the offering. Additional book-running managers are BofA Merrill Lynch, Jefferies LLC, Natixis Securities Americas LLC and RBC Capital Markets, LLC. Robert W. Baird & Co. Incorporated, Piper Jaffray & Co. and Samuel A. Ramirez & Company, Inc. are acting as co-managers for the offering.

 

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