SECURITY ASSOCIATES COMPLETES NEW FINANCING FOR ITS OPERATIONS
ARLINGTON HEIGHTS, Ill.
Security Associates Int’l Inc. (SAI) has completed a $24.8 million financing loan, replacing its previous lenders and making an additional $5.6 million available since Jan. 1 for operations and capital projects.
“This new facility assures that the company will have adequate funds for operations and completion of the current central station optimization plan,” says James Brannen, SAI president. “Management believes these efforts will lead to positive cash flows after debt service in the third quarter.”
The new loan includes an original issue discount of $2.3 million, which will be amortized over the life of the transaction and a mandatory debt service reserve of $500,000. It is collateralized by a security interest in eligible accounts receivable and related monitoring contracts and has a final maturity in August 2006.
SAI is the largest wholesale security alarm monitoring company in the United States.
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