Monitronics International, Inc. Announces Intention to Offer New Senior Secured First Lien Notes

Rhea-AI Summary

Monitronics International, operating as Brinks Home™, announced plans to offer $1.1 billion in Senior Secured First Lien Notes due 2028. The proceeds will be used to repay existing credit facilities and for general corporate purposes. These notes will be secured by liens on the company's assets and guaranteed by its subsidiaries. The offering is aimed at qualified institutional buyers and non-U.S. persons, adhering to the exemptions under the Securities Act of 1933.

Positive

• The offering of $1.1 billion in Senior Secured First Lien Notes could improve the company's financial flexibility.
• Proceeds used to repay existing credit facilities may enhance liquidity and reduce financial risk.

Negative

• The company's reliance on external financing indicates potential underlying financial strain.
• Uncertain market conditions may affect the success of the note offering.

DALLAS-FORT WORTH, Texas, Oct. 07, 2021 (GLOBE NEWSWIRE) -- Monitronics International, Inc. (doing business as Brinks Home™, the “Company”) announced that it intends, subject to market and other conditions, to offer $1.1 billion aggregate principal amount of Senior Secured First Lien Notes due 2028 (the “Notes”) in a private placement. The Company intends to use the net proceeds from the Notes offering, together with borrowings under its new credit facilities, to repay in full its existing credit facilities and to use any remaining proceeds for general corporate purposes. The Notes will be guaranteed, jointly and severally, on a first lien secured basis by each current and future wholly owned subsidiary of the Company that guarantees the Company’s or any guarantor’s other indebtedness. The Notes will be secured by liens on substantially all of the assets of the Company and the guarantors of the Notes.

The Notes to be offered have not been and will not be registered under the Securities Act of 1933, as amended (the “Securities Act”) or any state securities laws. The Notes may not be offered or sold within the United States except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act and applicable state securities laws. The Notes will be offered only to persons reasonably believed to be “qualified institutional buyers” in reliance on the exemption from registration provided by Rule 144A under the Securities Act and to certain non-U.S. persons in offshore transactions in reliance on Regulation S.

This press release does not constitute an offer to sell or the solicitation of an offer to buy any securities in any jurisdiction in which such an offer, solicitation or sale would be unlawful.

About Monitronics International, Inc.

Monitronics, which operates as Brinks Home™, is one of the largest home security and alarm monitoring companies in the U.S. Headquartered in the Dallas Fort-Worth area, Brinks Home secures approximately 900,000 residential and commercial customers through highly responsive, simple security solutions backed by expertly trained professionals. Brinks Home has a large network of independent authorized dealers - providing products and support to customers in the U.S., Canada and Puerto Rico - as well as direct-to-consumer sales of DIY and professionally installed products.

Forward Looking Statements

This press release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. You can identify these forward-looking statements by the use of words such as “may,” “expect,” “estimate,” “project,” “plan,” “believe,” “intend,” “achievable,” “anticipate,” “will,” “continue,” “potential.” “should” or “could” or the negative version of these words or other comparable words. Such forward-looking statements are subject to various risks, uncertainties and assumptions including, among others, risks inherent in the home security industry, competition for home security customers, litigation, complaints or adverse publicity, macroeconomic factors beyond the Company’s control, adverse publicity and product liability claims, increases and/or decreases in utility and other energy costs, increased costs related to utility or governmental requirements, cost increases or shortages in security and smart home technology products or components and the impact to the Company’s business, results of operations, financial condition, regulatory compliance and customer experience. In addition, the origination and retention of new subscribers will depend on various factors, including, but not limited to, market availability, subscriber interest, the availability of suitable components, the negotiation of acceptable contract terms with subscribers, local permitting, licensing and regulatory compliance, and the Company’s ability to manage anticipated expansion and to hire, train and retain personnel, the financial viability of subscribers and general economic conditions. Accordingly, there are or will be important factors that could cause actual outcomes or results to differ materially from those indicated in these statements. The Company undertakes no obligation to publicly update or review any forward-looking statement, whether as a result of new information, future developments or otherwise, except as required by law.

Contact
Erica Bartsch
ebartsch@sloanepr.com

FAQ

What is Monitronics International planning to offer on October 7, 2021?

Monitronics International plans to offer $1.1 billion in Senior Secured First Lien Notes due 2028.

How will Monitronics use the proceeds from the notes offering?

The proceeds will be used to repay existing credit facilities and for general corporate purposes.

Who can purchase the Senior Secured First Lien Notes offered by Monitronics?

The notes will be offered only to qualified institutional buyers and certain non-U.S. persons.

What financial impact does the Senior Secured First Lien Notes offering have on SCTY?

The offering may improve liquidity but also raises concerns about the company's reliance on external financing.

Are the Senior Secured First Lien Notes registered under the Securities Act?

No, the notes have not been and will not be registered under the Securities Act.