Vector receives $300 million in credit

PITTSBURGH—Vector Security, a large residential and commercial security provider based here, recently entered into an agreement for a $300 million revolving credit facility.

“We are looking to use the funds for growth. So, we'll be using them for acquisitions, as well as some organic growth and some projects that we're going to be working on,” Pam Petrow, Vector Security's president and CEO, told Security Systems News. The funds will also refinance some of the company's existing credit.

Petrow pointed to the Carolinas, Georgia, Tennessee, Kentucky and Indiana as new market areas for the company, which it could expand in. “Probably the most significant is the Texas market. We did an acquisition last year that took us into Dallas … and we anticipate being more active in that [Texas] market,” she said.

“The size of the facility itself is significant,” Chuck Thropp, Vector Security CFO, told SSN. “We have not been in a facility of this size in the past.” The agreement also includes the option for Vector to add up to $100 million in additional funding.

Thropp added that the new facility provides “significant liquidity and cash availability for growth. So, whether that growth is organic or acquisitive, or into new technologies, we have the financing available to do that.” It also provides additional flexibility in operating the business, he said.

The credit agreement was led by PNC Bank, N.A. as Administrative Agent; PNC Capital Markets LLC, Citizens Bank and Bank of America Merrill Lynch as Joint Lead Arrangers; and PNC Markets LLC as Sole Bookrunner. U.S. Bank National Association served as Syndication Agent.

“Our existing group of lenders—who have been with us for many, many years—all stayed as part of the agreement,” Petrow said. “For us, it was just a really great vote of confidence in the business and how the business is performing.” Petrow estimated that Vector has worked with PNC for more than 20 years.

Vector Security has about 306,000 customers, 76 percent of which are residential and 24 percent are commercial.