Ascent Capital Announces $1 Billion Refinancing by Monitronics
Ascent Capital Group, Inc announced that its wholly owned subsidiary, Monitronics International, Inc., has closed its previously announced offering of $410 million of 9.125% senior notes due 2020. The notes agreement was closed with Merrill Lynch. Concurrent with the closing of the notes offering, Monitronics entered into a floating rate senior secured credit facility providing for term loans of $550 million and a revolving credit facility of up to $150 million.
The term loan matures in six years and was coupled with an interest rate swap arrangement resulting in an effectively fixed interest rate of 6.3%. The revolving facility matures in five years and was undrawn at closing. The proceeds of the note offering and the term loans, together with cash on hand, were used to retire all of Monitronics’ previously outstanding debt and settle all related derivatives.
“We are pleased with the outcome of this refinancing,” said Mike Haislip, president and CEO of Monitronics International. “The result underscores the confidence that the financial markets have in our business model and provides greater operational flexibility. We are well positioned to build on the profitable growth the company has experienced since its inception and look forward to continuing to successfully execute our business plan.”
Ascent is a holding company and owns 100% of its operating subsidiaries, including Monitronics, a home security alarm monitoring company, headquartered in Dallas, TX, and certain former subsidiaries of Ascent Media Group, LLC.