Monitronics plans new debt for purchase of Security Networks

By Sara Rosenberg

New York, July 10 - Monitronics International Inc., the primary operating subsidiary of Ascent Capital Group Inc., plans on using new debt to help fund its acquisition of Security Networks LLC, officials said in a conference call on Wednesday.

The debt will be at the Monitronics and the Ascent Capital levels.

The company expects to launch its financing efforts this week, officials continued.

Other funds for the transaction will come from an incremental amount of cash from Ascent Capital's balance sheet.

Under the agreement, Security Networks is being bought for $487.5 million of cash and 253,333 newly issued shares of Ascent Capital series A common stock with an agreed value of $20 million.

Closing is expected in mid-August, subject to customary conditions, including regulatory approvals.

Monitronics is a Dallas-based home security alarm monitoring company. Security Networks is a West Palm Beach, Fla.-based provider of monitored security system services.

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