Security Networks ups credit facility by $100 million
WEST PALM BEACH, Fla.—Security Networks, a super-regional based here, announced April 30 that it has extended its credit facility by $100 million, bringing the total to $250 million.
“It allows us to stay ahead of the curve in terms of our capital structure, to execute our business plan,” Rich Perry Security Networks CEO told Security Systems News.
The company is “40 percent over planned production” so far in 2012 and has had about 38 percent CAGR for the past five years. “We’re still on that track,” he said “Though we won’t keep up that rate forever. The bigger you get, the harder it is to maintain the percentage,” he pointed out.
Perry said the company, which expanded West of the Mississippi in the past 18 months, “more than doubled the number of active affiliates [dealers] over the past year.” It now has 250 affiliates, he said.
Security Networks is presently is in 40 of the 50 DMAs. [Nielson Designated Market Areas]. Security Network’s model is to have its affiliate partners sell and install the security systems and “everything from the point of sale forward is directly between Security Networks and the customer,” Perry explained. “It’s an important distinction [from other models],” he said.
Security Networks has service technicians around the country, who are Security Networks’ employees who drive GPS-enabled Security Networks trucks and are dispatched from the company’s customer service call center here. They work out of their homes. “That’s been one advantage or our business model, the ability to grow without brick-and-mortar [in every market],” he said.
Security Networks was acquired by Oak Hill Capital in a deal that was underwritten by Goldman Sachs in November of 2010. Also participating in that deal were Barclays, Citizens Bank and TDBank. Those banks were joined by PrivateBank, Bank of America, CapitalSource and Capital One in the recent $100 million extension.