Monitronics launches $225 million term loan at Libor plus 325 bps

By Sara Rosenberg

New York, July 11 - Monitronics International Inc., the primary operating subsidiary of Ascent Capital Group Inc., held a call on Thursday to launch a $225 million term loan that is talked at Libor plus 325 basis points with a 1% Libor floor and an original issue discount in the 99 area, according to a market source.

The spread and floor match pricing on the company's existing term loan.

BofA Merrill Lynch, Citigroup Global Markets Inc. and Credit Suisse Securities (USA) LLC are the lead banks on the deal.

Proceeds will be used to help fund the acquisition of Security Networks LLC 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.

Other funds for the transaction will come from $150 million in 9 1/8% senior notes due 2020, $90 million of convertible senior notes due 2020 issued by Ascent Capital and cash on hand.

In addition, the company expects to amend its credit facility to increase its revolver by $75 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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