Verisure Holding to solicit consents from senior facilities lenders

By Angela McDaniels

Tacoma, Wash., Nov. 6 – Verisure Holding AB plans to solicit consents from the lenders under its senior facilities agreement and to make up to €40 million of incremental borrowings under the agreement to refinance its revolver credit facility and for general corporate purposes, according to a company announcement.

The incremental borrowings are dependent upon market conditions.

As previously reported, parent company Verisure Midholding AB is planning an offering of new senior notes due 2023 to redeem its existing private senior notes and to fund a €425 million distribution to shareholders, and Verisure Holding plans to obtain new borrowings under the senior facilities to fund a further €625 million distribution to the group’s shareholders.

The company is soliciting the consent of the majority lenders and, to the extent applicable, the majority revolving lenders to proposed amendments to the senior facilities agreement that would

• Enable the group to make the distributions;

• Allow distributions to Verisure Midholding for servicing cash interest payments on the senior notes;

• Provide a waiver to allow all ancillary actions necessary in order to complete the new notes and the new borrowings, the distributions and the related transactions;

• Allow future dividends subject to a senior secured net leverage ratio of 5.25 times;

• Allow additional facilities subject to a consolidated senior secured net leverage ratio of 5.25 times to refinance junior debt;

• Realign some covenants, baskets, thresholds and definitions with the senior notes; and

• Realign the financial covenant to account for the new notes, the new borrowings and the distributions.

Verisure Holding is also seeking consents from the holders of its €630 million of 6% senior secured notes due 2022.

The company said that since the senior facilities agreement was originally entered into in October 2015 it has demonstrated sustained growth in subscribers and cash generation while also deleveraging.

As of Sept. 30 and on an adjusted basis, the company had €31 million of cash and cash equivalents, no borrowings under the revolver, a €1.69 billion senior term loan and a €690 million incremental senior term loan.

Verisure is a Malmo, Sweden-based provider of professionally monitored alarms and connected services.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.