SAFE Security: $130 million refi to aid growth

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Wednesday, March 6, 2013

SAN RAMON, Calif.—SAFE Security completed a $130 million senior debt refinancing in late February with five lenders led by Bank of America. The new credit facility is an increase of $55 million, or 73 percent, over SAFE’s previous financing of $75 million.

“It gives us the financial flexibility to pursue our growth strategy,” Paul Sargenti, company president and CEO, told Security System News.

He recently told SSN that SAFE’s growth strategy involves leveraging its four channels: its wholesale monitoring business that it runs through its central station; its bulk acquisition program; a new DIY division; and its dealer program, the SAFE Dealer Network.

SAFE—one of the nation’s largest full-service security companies, which is based here but does business in 46 states—was acquired in December by ICV Partners, a New York-based investment firm. When asked about ICV’s role in the Feb. 28 cash infusion, Sargenti said, “My equity partners are full participants in this financial recapitalization.”

In addition to Bank of America, the refinancing syndicate included Bank of Montreal, OneWest Bank, Madison Capital, and U.S. Bank.

“They’ve all been involved in the security space,” Sargenti said. “They are all sophisticated lenders with specialty groups that understand the security space.”

He said two things about SAFE stood out for the lenders: “They liked our business model with our operational capabilities, as well as our very robust financial metrics.”

SAFE recently bought 24,000 accounts from Pinnacle Security, which represented about $1.1 million in RMR. SAFE’s goal in the next three to five years is to add $3 million in RMR to the $2.7 million it currently generates.