Protection One to launch change-of-control repurchase offer

By Jeff Pines

Washington, Nov. 17 - Protection One Inc. plans to launch a change-of-control repurchase offer at 101% of the principal for its 13 5/8% senior subordinated discount notes due June 2005 following completion of its debt restructuring with Quadrangle Group.

There are $29.9 million of the notes outstanding.

The Topeka, Kan.-based alarm monitoring company disclosed the information in a Wednesday filing with the Securities and Exchange Commission.

Protection One plans to restructure its debt by reducing its credit facility debt held by its controlling shareholders, the Quadrangle Group and its affiliates. In return for 800 million shares, Quadrangle will slash $120 million off the credit facility. About $201 million is outstanding on the facility.

The company will then do a 1:50 reverse stock split giving Quadrangle an 89% stake in the company.

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