ASG Security Ups Loan Facility to $270M
BELTSVILLE, Md. — After receiving a $20 million extension from its lender group, ASG Security has increased its revolving credit facility to $270 million. The firm plans to use the funds to continue executing on its growth plans over the next several years.
“We wanted to be prepared for a very active acquisition year in 2013,” ASG President and CEO Joe Nuccio tells SSI. “With the combination of a very favorable credit environment and our robust acquisition pipeline, it made sense for us to move forward with expanding our credit facility.”
Led by CapitalSource, ASG’s lender group includes Bank of America, Citizens Bank, Goldman Sachs, Madison Capital and The PrivateBank. Capital One Bank, TD Bank and Bank of Oklahoma also contributed to the increase.
“There was strong demand from the lending community to join the ASG loan facility as demonstrated by the fact that the increase was substantially over-subscribed,” says Will Schmidt, managing director, CapitalSource Security Lending Group. “This was not a surprise given the company’s strong performance, excellent management team and the favorable lending environment.”
The announcement comes less than a year after the firm raised its credit facility from $230 million to $250 million to expand its business, and the plan worked. Last year, ASG, which serves more than 170,000 customers throughout New England, the Mid-Atlantic region, Texas, Oklahoma and Louisiana brought in $530,000 in RMR from acquisitions. The deals helped the company grow from $7 million in to $7.9 million in annual recurring revenue. The company is looking for similar success this year.
“2013 will be another solid years for ASG,” Nuccio predicts. “From an acquisition standpoint, we are very excited about some of the great properties that we already have traction with. In terms of organic growth, our track record speaks for itself and I expect that 70% of new revenues in 2013 will come from internally created organic sales.”
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