Protection One, Inc. announced that it has reached an agreement with affiliates of Quadrangle Group, the Company's lenders under its credit facility and its majority equity holders, on a debt restructuring that would reduce the Company's obligations under its credit facility by $120 million in exchange for the equivalent of 800,000,000 shares of Protection One's common stock.
Protection One also announced today that Westar Energy, its former parent company, settled tax sharing-related obligations to Protection One for $73.0 million by paying the Company $45.9 million in cash and by tendering $27.1 million in Protection One 7 3/8% senior notes due 2005, including accrued interest.
"As a result of the agreements we've reached, Protection One will greatly strengthen its balance sheet and capital structure," said Richard Ginsburg, President and Chief Executive Officer of Protection One. "Our new balance sheet will give us a renewed ability to compete aggressively in this growing industry in which we have been a leader for many years."
David Tanner, a Managing Principal of Quadrangle Group said, "We are thrilled to have successfully agreed to an out-of-court restructuring with Protection One. These agreements enable us to continue our partnership with management, which began in February of this year through investments by Quadrangle Capital Partners and Quadrangle Debt Recovery Funds."
Michael Weinstock, co-head of Quadrangle Debt Recovery Funds, and a Managing Principal of Quadrangle Group added, "With its improved balance sheet, Protection One is well positioned to take advantage of interesting growth opportunities going forward."