Monitronics tightens discount on $225 million term loan to 99½

By Sara Rosenberg

New York, July 17 - Monitronics International Inc. revised the original issue discount on its $225 million term loan to 99½ from the 99 area, according to a market source.

Pricing on the loan is Libor plus 325 bps with a 1% Libor floor, which matches existing term loan pricing.

Bank of America 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 series A common stock by parent company Ascent Capital Group Inc.

Other funds for the transaction will come from $175 million of 9 1/8% senior notes due 2020, $90 million of convertible senior notes due 2020 issued by Ascent Capital and cash on hand.

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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