Sonitrol Increases Credit Facility to $175 Million
Berwyn, Pa. (July 11, 2006) - Sonitrol Corporation, the leader in verified electronic security, today announced an amendment that raises its credit facility from $135 million to $175 million. The amended credit facility includes a $125 million term loan and a $50 million revolver loan. The credit facility features improved terms and conditions that are more in line with the best available on the market, and it provides additional cash for acquisitions and significantly reduces the Company's interest expense.
"This amended credit facility is the result of Sonitrol's strong financial position," said Sonitrol Chairman and CEO Kevin Dowd. "It simultaneously reduces our interest expense and increases our capacity for further acquisitions, which we will continue to aggressively pursue."
The amended credit facility provides Sonitrol with the ability to invest its considerable cash flow into the core business at a reduced interest rate from the prior financing. In addition, the revolver provides the Company with a ready pool of capital for its acquisition program and the ability to increase this pool as needed based on the success of the program. The credit facility was arranged by Wachovia Bank and placed with a syndicate of lenders including Merrill Lynch Capital, Jeffries Babson Finance, Capital Source and LaSalle Bank.
Sonitrol Corporation (Berwyn, PA) is the leading provider of Verified Response security solutions for businesses and schools in North America. Founded by a policeman, the company's technology was created to reduce false alarms and increase apprehensions. Sonitrol's proprietary audio verification capability has assisted local law enforcement in the apprehension of more than 155,000 suspects since 1977. Its integrated suite of offerings includes audio intrusion alarms, access control, video surveillance and fire detection. For more information on Sonitrol and its integrated security solutions, please visit the company's website at www.sonitrol.com.