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Monitronics ups term B to $550 million, prices at Libor plus 425 bps
By Sara Rosenberg
New York, March 15 - Monitronics International Inc. increased its six-year term loan B to $550 million from $500 million and firmed the spread at Libor plus 425 basis points, the tight end of the Libor plus 425 bps to 450 bps talk, according to a market source.
The 1.25% Libor floor, original issue discount of 99 and 101 soft call protection for one year were left unchanged.
The company's now $700 million credit facility (Ba3/B), up from $650 million, also provides for a $150 million five-year revolver.
There is a $125 million accordion feature.
Financial covenants include a maximum total leverage ratio of 5.0 times through June 30, 2015 and 4.5 times thereafter, a maximum senior secured leverage ratio of 2.75 times through June 30, 2015 and 2.5 times thereafter, and a minimum interest coverage ratio of 2.0 times. The revolver will also have a maximum attrition rate of 15% and a maximum RMR secured leverage ratio of 28 times.
Closing is targeted for March 23.
Bank of America Merrill Lynch, Citigroup Global Markets Inc. and Credit Suisse Securities (USA) LLC are the lead banks on the deal, with Bank of America the left lead.
Proceeds will be used to repay all outstanding borrowings under an existing senior secured credit facility and to purchase notes under, and terminate, the existing securitization debt.
Other funds for the refinancing will come from $410 million of bonds that were downsized from $460 million as a result of the term loan B upsizing, the source added.
Monitronics is a Dallas-based alarm monitoring company with over 700,000 subscribers under contract.
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