Monitronics extends tender for its 11¾% notes

By Susanna Moon

Chicago, June 29 - Monitronics International, Inc. said it extended its tender offer for its outstanding 11¾% senior subordinated notes due 2010.

The tender offer will now expire at 10 a.m. ET July 19, extended from noon ET June 29. It began on May 17.

The tender offer is being extended to coordinate the closing of the tender with the completion of the debt financing required to provide the financing necessary to complete the tender offer, the company said in a press release.

As of June 29, $159.3 million of outstanding notes, or 99.6% of the principal amount, had been tendered, unchanged from June 15.

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 payout was based on the present value of $1,080, the redemption amount of the notes on their first call date of Sept. 1, discounted using the yield on the 4% Treasury due Aug. 31 and 50 basis points.

Pricing was set June 1. The yield on the reference security was 4.891%, and the tender yield was 5.391%.

Monitronics was also 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 consents.

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).

The Dallas-based company provides security alarm monitoring and related services.

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