Monitronics amends credit agreement, adds $295 million revolver

By Tali Rackner

Norfolk, Va., Oct. 3 – Monitronics International, Inc. entered into an amendment to its credit agreement on Friday that provides for a new $295 million super priority revolving credit facility and an upsized $1.1 billion six-year senior secured term loan B, according to an 8-K filing with the Securities and Exchange Commission.

Bank of America, NA is the administrative agent.

The revolver bears interest at Libor plus 400 basis points, subject to a 1% Libor floor, and matures on Sept. 30, 2021, subject to a springing maturity 180 days prior to the scheduled maturity date of the company’s 9 1/8% senior notes due 2020.

The term loan B matures on Sept. 30, 2022 and bears interest at Libor plus 550 bps with a 1% Libor floor.

The company used the net proceeds from the facilities to retire about $403.8 million of its existing term loan B due March 2018 and about $543 million of its existing term loan B-1 due April 2022. Net proceeds were also used to repay a portion of the company’s existing revolver.

As of quarter’s end, $48.4 million was outstanding under the revolver, which includes refinancing transaction fees and $26.7 million for the semiannual interest payment due Oct. 1 on the 9 1/8% notes.

The amended credit agreement also incorporates certain covenant changes, including increasing the maximum consolidated total leverage and the consolidated senior secured RMR leverage ratios and replacing the financial covenant relating to the consolidated senior secured leverage ratio with a covenant relating to the company’s consolidated senior secured eligible recurring monthly revenue.

Monitronics is a Dallas-based home security alarm monitoring company.

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