Protection One received a $66.8 million add-on last Wednesday, increasing the size of its term loan to $300 million. Pricing is LIBOR plus 2 1/2% on the loan, which launched last March at $250 million and was paid down to $233.2 million. Bear Stearns leads the add-on, which will be used along with cash-on-hand, to fund a $75 million dividend. Quadrangle Group is a majority investor.
In March 2005, Bear Stearns and Lehman Brothers led the $275 million deal for the alarm monitoring company that consisted of a five-year, $25 million revolver and a six-year, $250 million term loan "B." The revolver was priced at LIBOR plus 3 1/4% and the term loan was priced at LIBOR plus 3% (LMW, 3/25). The size and pricing of the revolver did not change. Moody's assigned a B2 rating to the add-on and affirmed the B2 rating of the senior secured credit facility. Calls to officials at Quadrangle Group and Protection One were not returned.