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Capital One Provides $290MM Senior Credit Facility to Interface Security Systems

August 04, 2017, 07:09 AM
Filed Under: Security Systems

Capital One announced that it served as the sole bookrunner, joint lead arranger and administrative agent for a $290 million senior secured credit facility for Interface Security Systems, the seventh largest supplier of security services in the United States. The facility consists of a $230 million senior term loan and a $60 million revolving line of credit. The funding will enable the company to refinance existing debt and provide capital to execute its growth strategy. Capital One is providing the credit facility in connection with a recapitalization of the business by Prudential Capital Partners and SunTx Capital Partners.

“Interface has been a long-standing customer and we are excited to be a part of this significant capital raise, which will help support continued growth for the business,” said John Robuck, Managing Director of Capital One’s Security Finance team. “Interface’s unique bundled service offering, its emphasis on growing segments of the commercial security sector, and the strength of its equity partners all contribute to their leading position in the market.”

Interface Security Systems is a pioneer in the deployment of cloud-managed internet protocol security services. From its platform, it assists many predominantly large, commercial, multisite customers simplify operations by combining both physical and network security solutions into one highly efficient, integrated services bundle.

“We’re always looking to take our technology to the next level and reach new customers,” said Michael Shaw, CEO, Interface Security Systems. “This facility will provide a solid foundation for us to continue growing and providing high quality solutions to our clients. Capital One’s experience and track record in the security industry is second-to-none.”

Both Prudential Capital Partners and SunTx Capital Partners focus on middle-market companies.
SunTx Capital Partners is a Dallas-based private equity firm that invests in middle-market manufacturing, distribution and service companies. It typically invests in management buyouts and corporate spin-offs, consolidations, underperforming companies, growth equity, recapitalizations, generational transition and public-to-private transactions.

“As we put this transaction together, we knew we would need a lender who understands the security business and a partner that saw the potential in the company’s future,” said Ned Fleming, Managing Partner, SunTx Capital Partners. “We’ve had a long-standing relationship with Interface and this transaction will allow us to move forward to their next chapter.”

Prudential Capital Partners is a leading worldwide provider of private debt, mezzanine and equity securities. It provides subordinated debt and equity to companies in a wide range of industries, ranging from transportation to utility and finance.

“With the support of SunTx, Interface Security Systems has developed a very impressive bundle of IP managed services to which their customers have reacted very positively,” said Robert Derrick, Managing Director and Partner with Prudential Capital Partners. “We are pleased to be a partner in a new capital structure that will provide Interface with the ability to continue to grow and provide value to their customers."

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