Sonitrol Increases Credit Facility to $175 Million
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.