CapitalSource Provides $100 Million Loan to Interface Security Systems

The company will use the proceeds from the loan to fund an aggressive growth strategy throughout the upper and lower Mississippi Valley


CHEVY CHASE, MD -- CapitalSource Finance LLC, one of the leading commercial finance firms in the United States, announced that it has provided a $100 million senior loan facility to St. Louis (MO)-based Interface Security Systems LLC and The Greater Alarm Company, which provide high-level, custom-designed and engineered security services and solutions to tens of thousands of customers, ranging from homeowners and small businesses to large multinational Fortune 100 corporations. The company will use the proceeds from the loan to fund an aggressive growth strategy throughout the upper and lower Mississippi Valley, Texas and California.

"The recent trends in the security industry indicate that well-capitalized alarm companies and systems integrators have the opportunity for dramatic growth," said Michael Shaw, Chief Executive Officer of Interface. "Interface is excited about its strategic position in the market and the potential to continue its expansion through a more aggressive acquisition and internal growth plan. Partnering with CapitalSource is an important step forward for the company, its employees and most importantly, our valued customers."

Dean Graham, President of CapitalSource's Healthcare and Specialty Finance Business, stated, "The closing of this transaction is another indication that CapitalSource is now the premier financing source in the security lending market."

Bill Polk, Managing Director with CapitalSource, commented, "CapitalSource is delighted to reinforce its commitment to Mike and his team as they continue to successfully build their subscriber basis in the upper and lower Mississippi Valley region and California." Added Tom Pagnani, Director with CapitalSource, "Mike and his team represent one of the premier management teams in the industry today; we are very excited about reinforcing our commitment to work with them and SunTx Capital."

"We are pleased to be working again with CapitalSource," added Craig Jennings, Partner with Dallas-based SunTx Capital Partners, which provided equity financing for the transaction. "They quickly understood our investment thesis and provided the certainty and speed of closing that was critical from our perspective."