Allied Security amends loan to lower pricing on term loan borrowings

By Sara Rosenberg

New York, May 11 - Allied Security Holdings LLC amended its senior secured credit facility, reducing the interest rate on its term loan to Libor plus 375 basis points from Libor plus 425 basis points, with a step down to Libor plus 350 basis points when leverage is below 3.5x, according to an 8-K filed with the Securities and Exchange Commission Wednesday.

In addition, under the amendment, the basket for permitted acquisitions was increased to $60 million from $30 million, mandatory principal repayment of the term loan was decreased for fiscal years 2005 and 2006, and the sublimit for letter-of-credit availability under the revolving credit facility was increased to $50 million from $40 million.

The term loan repricing was done by getting a new $202 million term loan C that was used to replace the term loan B.

Amortization on the term loan C is $1.25 million for each quarter in 2005 and 2006, $7.5 million for each quarter in 2007, 2008 and 2009, and $51.625 million for the periods ending March 31, 2010 and June 30, 2010, the filing said.

The amendment was effective beginning Tuesday.

Bear Stearns Corporate Lending Inc. is the administrative agent on the deal.

Allied Security is a King of Prussia, Pa.-based provider of security officer services.

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