Secure Home receives confirmation of pre-packaged Chapter 11 plan

By Sarah Lizee

Olympia, Wash., May 26 – Secure Home Holdings LLC’s pre-packaged Chapter 11 plan was confirmed by the U.S. Bankruptcy Court for the District of Delaware, according to an order filed Wednesday.

According to the disclosure statement, the restructuring will result in a significant deleveraging of the debtor’s capital structure, which currently includes a $197.5 million first-lien facility, a $34 million second-lien term loan and a $6.8 million PPP loan, as previously reported.

The post-emergence structure will consist of $145 million of reorganized equity interests and $35 million to $45 million of exit facilities. Invesco and other first-lien lenders will receive their pro rata share of the reorganized equity interests.

The facilities will consist of a $25 million to $30 million revolver and $10 million to $15 million of rollover term loans, each from DIP lenders Invesco and first-lien lenders. Seaport Loan Products LLC and Acquiom Agency Services LLC are the co-administrative agents, and Acquiom Agency Services is the collateral agent.

The commitments under the revolver will be available on the closing date of the restructuring transactions. The outstanding amount of new money debtor-in-possession term loans will be automatically exchanged and converted on a dollar-for-dollar basis into term loans under the rollover facility.

Interest on the facilities will be Libor plus 550 basis points, subject to a 1.5% Libor floor. The facilities will mature in three years.

Under the plan, holders of other priority claims will receive payment in full in cash.

Holders of other secured claims will receive payment in full in cash, the collateral securing their claims, or reinstatement of their claims.

Second-lien secured claims and general unsecured claims will be canceled with no distribution.

Intercompany claims will be either reinstated or canceled with no distribution.

Subordinated claims will be canceled, released and discharged with no distribution.

Other equity interests will be canceled without any distribution.

Intercompany equity interests will be canceled with no distribution, provided the interests may be reinstated for administrative purposes.

The Newtown Square, Pa.-based company provides technologically advanced security solutions, including residential and commercial security systems, home automation systems, smoke and carbon monoxide detectors, and other security solutions. The company filed bankruptcy on April 25 under Chapter 11 case number 21-10745.

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