Protection One Inc. announces that its operating
subsidiary, Protection One Alarm Monitoring, Inc., has
successfully completed the closing of a new senior secured
credit facility from a syndicate of lenders led by Bear,
Stearns & Co. Inc. and Lehman Brothers Inc. The new
facility consists of a $25 million revolving credit
facility and a $250 million term loan. The revolving credit
facility matures in 2010 and the term loan matures in 2011,
subject to earlier maturity if the company’s senior
subordinated notes are not refinanced before July 2008.
With the closing of this transaction, Pro One’s weighted
average rate of interest on its total outstanding
indebtedness of $360 million will decrease (subject to
changes in LIBOR) to approximately 6.7 percent from 8.2
percent. The new credit facility follows the company’s
recent debt for equity exchange that, along with other
transactions, reduced its total outstanding debt by
approximately $190 million.
Commenting on the transaction, Richard Ginsburg,
president and CEO, said in a statement, “We are very
pleased that we were able to quickly follow our recent
financial
restructuring with the successful closing of this new
credit facility. We believe the confidence our new lenders
have put in Protection One is a testament to the appeal of
our business model, which effectively balances growth and
debt reduction.” Protection One is one of the largest
providers of security monitoring services in the United
States. Including its Network Multifamily subsidiary, a
leading security provider to the multifamily housing
market, Protection One provides monitoring and related
security services to more than 1 million residential and
commercial customers.
