SAFE Security secures new sub-debt facility

SAN RAMON, Calif.— SAFE Security announced on Oct. 25 that it has secured a subordinated debt facility with lead agent Ironwood Capital and co-investor OFS Capital Corporation, an investment that SAFE president and CEO Paul Sargenti said will allow the company to continue its strong growth for the year.

“We have known Ironwood for a long time and have appreciated their knowledge of the industry,” Sargenti told Security Systems News. “And at the time when we wanted to expand our sub-debt capital structure, they were there with a plan to replace our existing sub-debt provider, Prospect Capital, and provide additional capital to grow the business.”

With the completion of this critical financing, Sargenti said that SAFE can “continue to execute our multi-channel business plan, which includes organic, dealer program, bulk acquisition and DIY,” he said.

“SAFE's established customer base, organic growth engine, growing dealer program and strong relationships with independent dealers is impressive,” Roger Roche, Ironwood's senior managing director, said in a prepared statement. “We like the team, we like their growth plan and we like the business trajectory.”

Sargenti said that SAFE is doing very well this year, “ahead of our plan for 2016 and significant growth over 2015 and we like the way our financial metrics have performed.”

Along with SAFE's senior credit facility, a six bank group led by Citizens bank, the additional capital will also allow the company to be active on the acquisition front, Sargenti noted.

Founded in 1988, SAFE Security is a national alarm company with operations in 50 states, Puerto Rico and Canada. The “SAFE Companies” umbrella includes SAFE Security, a full-service alarm company, SAFE Monitoring Technologies, and California Security Alarms, Inc., a full-service alarm company.