Monitronics Emerges From Chapter 11, Eliminates $885M of Debt
Newly merged with Ascent Capital Group, the company’s biggest shareholders are now EQT Partners and Brigade Capital Management.
Monitronics, which goes to market as Brinks Home Security, has emerged as a stronger, more focused organization, states President and CEO Jeffery Gardner.
DALLAS — Monitronics Int’l announced Friday it successfully emerged from Chapter 11 protection and has merged with Ascent Capital Group, marking the completion of the company’s financial recapitalization.
As a result of the financial recapitalization, Monitronics’ largest shareholders will be EQT Credit, the credit arm of EQT Partners, and Brigade Capital Management. Trading of the new Monitronics shares — under the ticker SCTY on the OTC Markets — is expected to begin on or before Sept. 4.
Monitronics, which goes to market as Brinks Home Security, has emerged as a stronger, more focused organization, states President and CEO Jeffery Gardner.
“With renewed balance sheet strength, a strong subscriber portfolio and recurring revenue base, and the support of EQT and Brigade, two highly regarded financial sponsors, we are well-positioned to be a leader in the accelerating home security market and to execute on the vast growth opportunities ahead,” he says.
Monitronics eliminated approximately $885 million of debt. This included approximately $585 million aggregate principal amount of the company’s 9.125% senior notes due 2020, $250 million of term loans and $50 million of revolving loans.
New Board of Directors
In tandem with the completion of its restructuring, the company appointed a new board of directors. Along with Gardner, the new board members are:
- Michael J. Kneeland, chairman of the board, who most recently served as the CEO of United Rentals and currently serves as the non-executive chairman of United Rental’s Board
- Stephen Escudier, who currently serves as a partner at EQT Partners
- Andrew Konopelski, who currently serves as a partner at EQT Partners and head of EQT Credit
- Michael Meyers, who most recently served as CFO of Monitronics
- Mitchell G. Etess, who most recently served as the CEO of Mohegan Gaming Authority & Entertainment
- Patrick J. Bartels, Jr., who currently serves as the managing member of Redan Advisors and holds the chartered financial analyst designation.
Monitronics was represented in the recapitalization by Latham & Watkins LLP, King & Spalding LLP, Hunton Andrews Kurth LLP, Moelis & Co. LLC and FTI Consulting. Ascent was represented in this matter by Baker Botts LLP and B. Riley FBR.
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About the Author
Rodney Bosch, Senior Editor
Although Bosch’s name is quite familiar to those in the security industry, his previous experience has been in daily newspaper journalism. Prior to joining SECURITY SALES & INTEGRATION in 2006, he spent 15 years with the Los Angeles Times, where he performed a wide assortment of editorial responsibilities, including feature and metro department assignments as well as content producing for latimes.com. Bosch is a graduate of California State University, Fresno with a degree in Mass Communication & Journalism. In 2007, he successfully completed the National Burglar and Fire Alarm Association’s National Training School coursework to become a Certified Level I Alarm Technician.
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