Vector Security, a provider of residential and commercial security and automation solutions, entered into a $450 million credit agreement led by PNC Bank as administrative agent; PNC Capital Markets as sole bookrunner and joint lead arranger; and with Bank of America and U.S. Bank acting as joint lead arrangers and syndication agents.
This new credit agreement provides for a $450 million revolving credit facility commitment, with a $150 million increase option subject to the terms and conditions outlined in the credit agreement. The credit agreement matures in June 2024 and provides Vector Security with a significant increase in its borrowing capacity with an improved structure, and attractive interest rate options.
Vector Security plans to use the proceeds of the credit agreement for repayment of its existing credit facility, for working capital purposes, to finance acquisitions such as the recently announced purchase of ADS Security based in Nashville and for general corporate purposes.
“Our history of consistent performance, positive industry reputation and a strong management team were the contributing factors leading to our ability to close on this new credit facility,” Pam Petrow, president and CEO of Vector Security, said. “This new financing provides us the financial flexibility and additional liquidity to capitalize on expansion opportunities. Our recent purchase of ADS Security is a testament to the commitment from our company; and our lending partners in support of our growth initiatives.”
