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S&P rates Brinks loan B+, notes B-
S&P said it assigned Monitronics International Inc.’s (Brinks Home Security) planned $100 million super-priority term loan due 2025 B+ issue with 1 recovery ratings (rounded estimate: 95%) and B- with 3 recovery ratings (rounded estimate: 50%) to its proposed $1 billion senior secured notes facility. The loan will have a $75 million immediate draw at close and a $25 million delayed draw,
Monitronics will use the proceeds to refinance its capital structure.
“The refinancing alleviates covenant pressures and improves our view of liquidity. We previously considered Monitronics' liquidity to be less than adequate in large part due to a tight financial covenant setting maximum senior secured debt to recurring monthly revenue (RMR) at 30x, which could have limited access to the revolving credit facility. Though not finalized at the time of publishing, we expect this refinancing to loosen the company's financial covenants such that Monitronics maintains a 15% cushion under its limits in our forecast over the next year,” S&P said in a press release.
S&P also affirmed the company’s B- issuer rating, and the outlook remains negative.
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