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Protection One completes debt restructuring, starts change-of-control offer for 13 5/8% notes
New York, Feb. 9 - Protection One, Inc. said it completed its out-of-court debt restructuring with affiliates of Quadrangle Group, its bank lenders and its majority equity holders.
The Lawrence, Kan., provider of security services also said it has begun a change-of-control tender offer for its 13 5/8% senior subordinated discount notes.
Under the restructuring, credit facility debt was cut by $120 million in exchange for the issuance of 16 million shares of common stock. The company also made a cash payment to reduce borrowings by a further $3 million.
Protection One and Quadrangle extended the credit facility to Aug. 15, 2005 and modified other terms.
Following the restructuring and a 1:50 reverse stock split, Quadrangle owns 97% of the company's stock. Total debt is $383 million compared to $547 million at the end of September 2004 and will fall further to $353 million on redemption of the 13 5/8% notes.
Quadrangle managing principals David Tanner, Steven Rattner and Michael Weinstock were named to the board. Ben Enis and James Wilson resigned.
Protection One also said it has begun an offer to buy for cash its 13 5/8% notes at a price of 101 plus accrued interest. The change-of-control offer runs through March 10.
Any notes not tendered will be redeemed at par plus accrued interest on March 11.
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