Securus Technologies solicits consents for 11% notes due 2011

By Jennifer Chiou

New York, Feb. 17 - Securus Technologies, Inc. announced the start of a consent solicitation to amend the indenture of its $154 million of 11% second-priority senior notes due 2011.

The company said the proposed amendment would increase the amount of indebtedness Securus may incur under its credit facility to $60 million from $30 million and allow Securus to pursue strategic opportunities to acquire corrections market assets.

The solicitation ends at 5 p.m. ET on March 2, unless extended.

For each $1,000 principal amount of notes, the company said it will pay a consent fee of $10.00.

Securus must obtain consents from holders of a majority of the notes, after which the company added it intends to execute a supplemental indenture.

The amendment is conditioned upon Securus closing an acquisition of selected inmate telecommunication businesses that meets certain financial criteria.

Morgan Stanley & Co. Inc. (212 761-1864) is solicitation agent. Global Bondholder Services Corp. (866 470-4500) is information agent, tabulation agent and paying agent.

Based in Dallas, Securus supplies detainee telecommunications and information management products.

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