Securus refinances $194 million 11% notes, $97.6 million of 17% notes

By Angela McDaniels

Tacoma, Wash., May 5 - Securus Technologies, Inc. is refinancing its $194 million 11% second-priority senior secured notes due September 2011 and approximately $97.6 million of its 17% senior subordinated pay-in-kind notes due September 2014, according to an 8-K filing with the Securities and Exchange Commission.

The company used proceeds from a new $220 million credit facility to refinance the 17% notes, which were issued in a private placement.

Proceeds will also be used to redeem $95.2 million of the 11% notes for approximately $100.4 million, including accrued interest and call premiums, on June 1.

The remainder of the 11% notes will be exchanged for approximately $51.6 million of new senior subordinated second-lien notes and $50 million of new senior secured PIK toggle notes issued by Securus Holdings, Inc.

Proceeds were also used to refinance the company's existing revolving credit facility.

Securus is a Dallas-based provider of call management systems, offender management systems and friend and family calling services to the correctional industry.

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