Monitronics Emerges From Chapter 11, Eliminates $885M of Debt

DALLAS — Monitronics Int’l announced Friday it successfully emerged from Chapter 11 protection and has merged with Ascent Capital Group, marking the completion of the company’s financial recapitalization.

As a result of the financial recapitalization, Monitronics’ largest shareholders will be EQT Credit, the credit arm of EQT Partners, and Brigade Capital Management. Trading of the new Monitronics shares — under the ticker SCTY on the OTC Markets — is expected to begin on or before Sept. 4.

Monitronics, which goes to market as Brinks Home Security, has emerged as a stronger, more focused organization, states President and CEO Jeffery Gardner.

“With renewed balance sheet strength, a strong subscriber portfolio and recurring revenue base, and the support of EQT and Brigade, two highly regarded financial sponsors, we are well-positioned to be a leader in the accelerating home security market and to execute on the vast growth opportunities ahead,” he says.

Monitronics eliminated approximately $885 million of debt. This included approximately $585 million aggregate principal amount of the company’s 9.125% senior notes due 2020, $250 million of term loans and $50 million of revolving loans.

New Board of Directors

In tandem with the completion of its restructuring, the company appointed a new board of directors. Along with Gardner, the new board members are:

  • Michael J. Kneeland, chairman of the board, who most recently served as the CEO of United Rentals and currently serves as the non-executive chairman of United Rental’s Board
  • Stephen Escudier, who currently serves as a partner at EQT Partners
  • Andrew Konopelski, who currently serves as a partner at EQT Partners and head of EQT Credit
  • Michael Meyers, who most recently served as CFO of Monitronics
  • Mitchell G. Etess, who most recently served as the CEO of Mohegan Gaming Authority & Entertainment
  • Patrick J. Bartels, Jr., who currently serves as the managing member of Redan Advisors and holds the chartered financial analyst designation.

Monitronics was represented in the recapitalization by Latham & Watkins LLP, King & Spalding LLP, Hunton Andrews Kurth LLP, Moelis & Co. LLC and FTI Consulting. Ascent was represented in this matter by Baker Botts LLP and B. Riley FBR.

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