Monitronics Refinances for $1B
DALLAS — Monitronics refinanced the company for more than $1 billion, the company announced.
The alarm monitoring services provider has closed its previously announced offering of $410 million of 9.125% senior notes due 2020, according to a press release. The company has also entered into a floating rate senior secured credit facility providing for term loans of $550 million and a revolving credit facility of up to $150 million.
“The company’s existing long-term debt, which was a securitization, was scheduled to go into amortization this summer,” Monitronics CFO Mike Meyers tells SSI. “So, we evaluated various financing alternatives to determine the best structure to meet our needs.”
The term loan, which matures in six years, was joined with an interest rate swap arrangement resulting in an effectively fixed interest rate of 6.3%. Monitronics paid off its outstanding debt from the proceeds of the term loans, as well as with cash on hand.
“The new financing provides the company with an attractive cost of funding,” Meyers says. “Additionally, it offers more operational flexibility, less administrative complexity, longer maturities and a blueprint for future funding.”
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