Monitronics sets pricing, gets necessary consents for 11¾% notes

By Jennifer Chiou

New York, June 4 - Monitronics International Inc. announced that it received enough consents to amend the indenture of its 11¾% senior subordinated notes due 2010.

As of the consent deadline of 5 p.m. ET on June 1, holders of $159.3 million, or 99.6%, of the notes had tendered their securities.

The company said it has entered into a supplemental indenture.

The total consideration for each $1,000 principal amount of notes is $1,091.51, including a $30.00 payment for those who tendered by the consent deadline.

For each $1,000 principal amount of notes, the company calculated its payout using the present value of $1,080, the redemption amount of the notes on their first call date of Sept. 1, 2007, discounted using the yield on the 4% Treasury due Aug. 31, 2007 and 50 basis points.

Pricing was determined at 2 p.m. ET on June 1. The yield on the reference security was 4.891%, and the tender yield was 5.391%.

The Dallas-based provider of alarm system monitoring services is soliciting consents to amend the note indenture to shorten the advance notice required before Monitronics may redeem the notes to three business days from 30 days prior to the redemption date, to eliminate substantially all restrictive covenants and certain events of default provisions, to amend certain provisions of covenants relating to the merger and consolidation of Monitronics and its subsidiary guarantors, to make changes to certain terms of the defeasance provisions and make related changes in the notes and to delete the form of supplemental indenture for subsequent guarantors.

Holders who tender must deliver consent.

The tender offer expires at midnight ET on June 15. It began on May 17.

The offer is conditioned on the receipt of consents sufficient to approve the proposed amendments and the necessary financing.

Morgan Stanley & Co., Inc. is the dealer manager and solicitation agent (800 624-1808 or call collect 212 761-5384, attn: Tate Forrester). D.F. King & Co., Inc. is the information agent (call collect 212 269-5550 or 800 290-6427).

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