Monitronics Seeks $225 Million Loan as Debt Prices Extend Gains

Monitronics Seeks $225 Million Loan as Debt Prices Extend Gains Jul 11th 2013, 20:37 Monitronics International Inc. is seeking a $225 million loan to fund an acquisition as loan prices climb for a fourth straight day. The security alarm monitoring provider that's buying Security Networks LLC will pay interest on the five-year debt at 3.25 percentage points more than the London interbank offered rate with a 1 percent minimum, the same as an existing loan, according to a person with knowledge of the matter who asked not to be identified because the deal is private. Prices of leveraged-loans rose for the fourth straight day gaining 0.21 cents to 97.87 cents on the dollar, according to the Standard & Poor's/LSTA Leveraged Loan 100 Index. Since the end of April, loans have dropped only 0.3 percent compared with a 2.77 percent decline in high-yield bonds, according to Citigroup Inc. "For the most part, loans are fulfilling their role as an oasis within the rate-weary fixed-income market," Citigroup analysts led by Michael Henry Anderson wrote in a report today. ClubCorp Club Operations Inc., a golf- and country-club operator, proposed the rate it may pay on approximately $300 million in term loans, according to a person with knowledge of the transaction. The seven-year debt may pay interest at 3.5 percentage points more than Libor with a 1 percent minimum, said the person, who asked not to be identified because terms are private. The company is offering the loan to lenders at 99.5 cents to 99.75 cents on the dollar.