Alarm monitoring services provider Monitronics International on Monday announced that it has completed a more than $1 billion refinancing effort.
According to a statement, the company has closed its previously announced offering of $410 million of 9.125 percent senior notes due 2020. In addition, Monitronics has also 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 percent. The proceeds from the term loans together with cash on hand was used to pay off the company's outstanding debt.
"We are pleased with the outcome of this refinancing," said Mike Haislip, president and chief executive officer of Monitronics. "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."