We have strong confidence in the Company and believe Monitronics will emerge an even more dynamic business, well positioned to deliver great value and long-term growth for all its stakeholders.” Monarch Alternative Capital LP Chief Executive Officer Michael Weinstock adds, “We are excited to continue our partnership with Monitronics to support the next stage of its growth trajectory by providing capital, operating expertise, and board leadership. We are genuinely excited about the future.”ĬE Pro 2023 Wage, Salary, and Labor Rates Deep Diveĭiscover the drastic difference a year can make when it comes to wage, salary, and labor rates in the custom integration industry. We also appreciate the support of the Company’s lenders, including the new principal equity investors, Monarch and Invesco. I want to thank our dedicated employees for their hard work and commitment and our valued dealer partners, who are integral to our ongoing success. Niles continues, “Given the level of support we have for this transaction we expect absolutely no impact on our ability to continue serving our customers, partners, and employees. “We are pleased to have reached an agreement with our lenders and shareholders to create a capital structure that is right-sized for our business model.” William Niles, CEO, Monitronics The company will emerge with approximately $600 million in exit financing. The financing will fund Monitronics’ operations during the Chapter 11 proceedings, including the payment of employee wages and benefits, suppliers, partners, and vendors in the ordinary course of business. Monitronics, which monitors more than 800,000 alarm accounts, has received commitments for approximately $387 million in new money financing during the Chapter 11 cases from existing lenders, including $90 million in new money to fund the Chapter 11 process and provide cash to the balance sheet as well as $297 million to refinance the company’s existing Superpriority Revolving Credit Facility and Term Loan. Our Q1 2023 performance exceeded expectations and we are continuing to see tailwinds in our go to market channels.” In 2022, we created 131,000 new subscribers at a 26x creation multiple while concurrently generating 55% EBITDA margins. “The strength of the underlying Monitronics business model positions us for success in a growing market. Our new balance sheet will provide sufficient liquidity to grow our subscriber base at attractive returns and generate levered free cash flow,” said Monitronics Chief Executive Officer William Niles. “We are pleased to have reached an agreement with our lenders and shareholders to create a capital structure that is right-sized for our business model. The plan is to emerge from Chapter 11 within 46 days of filing. Bankruptcy Court for the Southern District of Texas to be commenced on or around May 15, 2023. The restructuring will take place in the U.S. Under this new proposed bankruptcy plan, both Monarch and Invesco will become the new principal equity owners of Monitronics, providing the company with additional support to execute on its business plan. The current lenders are ones that took a stake in the company back in 2019 as part of its takeback term loan facility, including funds managed by Monarch Alternative Capital LP and Invesco Senior Secured Management, Inc. in early 2018 to be remade into Brinks Home Security. After rebranding as Monitronics in 2016, entered an exclusive trademark licensing agreement with The Brink’s Co. Back in 2019, when Monitronics was owned by Ascent Capital, the company filed for bankruptcy protection to refinance $985 million in debt.
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