June 6, 2019 / 10:13 AM / 12 days ago

Sector Alarm shareholders reap €250m dividend payout

LONDON, June 6 (LPC) - Shareholders in Sector Alarm, the second largest alarm firm in Europe, have taken around €250m as a dividend payout as part of a wider €590m recapitalisation, banking sources said.

Bank of America Merrill Lynch and Morgan Stanley led the deal, alongside Danske and DNB, which closed syndication to leveraged loan investors on June 6.

The seven-year covenant-lite term loan B was issued in Europe’s secondary loan market at par, the tight end of revised 99.5-par guidance.

“This is a privately owned company which is well liked across the leveraged loan market. It’s performed well and they’re taking some money out,” a senior banker said.

It closed to pay a margin of 350bp over Euribor, with 0% floor and 101 soft-call protection for six months. The margin was lowered during the syndication process from 375bp-400bp at launch.

Corporate and facility ratings are B/B1.

Founded in 1995, Sector Alarm is a Norwegian company with a 2018 turnover of over €240m and it provides monitored security solutions to homeowners and small businesses across Europe, according to the firm’s website. (Editing by Christopher Mangham)

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