Monitronics increases revolver, gets $225 million new term B loans

By Tali David

Minneapolis, Aug. 22 - Monitronics International, Inc. entered into amendment No. 3 to its amended and restated credit agreement and amendment No. 1 to its guaranty agreement on Aug. 16, according to an 8-K filed with the Securities and Exchange Commission.

Bank of America, NA is the administrative agent.

The amendment provides for, among other things, a $75 million increase in the commitments under the revolving credit facility, making the total amount $225 million; $225 million of new term B loans and certain other amendments.

Extensions of credit under the amended credit agreement bear interest at an interest rate equal to either the base rate or eurodollar rate plus the applicable rate. The eurodollar rate is currently based on Libor.

The applicable rate for revolving credit borrowings under the amended credit agreement will continue to be 275 basis points for base rate loans and 375 bps for eurodollar rate loans and letter of credit fees.

The applicable rate for term borrowings, including the new term B loans, will continue to be 225 bps for base rate loans and 325 bps for eurodollar rate loans.

The fee on the daily unused amount of the revolving credit facility is 50 bps.

The amendment is in connection with Monitronics entering into an agreement to purchase Security Networks, LLC.

Monitronics is a Dallas-based home security alarm monitoring company. Security Networks is a West Palm Beach, Fla.-based provider of monitored security system services.

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