Simpson Thacher is representing JPMorgan and Barclays Capital, as joint lead arrangers, in connection with $415 million of senior secured credit facilities to finance a portion of the acquisition of Protection One, Inc. by private equity sponsor GTCR.
Under the terms of the merger agreement, an affiliate of GTCR will commence a tender offer on or about May 3, 2010 to acquire all of the outstanding common stock of Protection One for $15.50 per share in cash, followed by a merger to acquire all remaining outstanding Protection One shares at that same price. The total purchase price, including the refinancing of Protection One’s debt, will be approximately $828 million.
Proceeds of the senior secured credit facilities, will be used, in part, to pay a portion of the cash consideration in connection with the acquisition and will be used to finance future working capital and capital expenditure needs of Protection One.
Protection One, Inc. (Nasdaq: PONE), based in Lawrence, KS, is a leading national provider of electronic security services to the residential, commercial and wholesale markets.
The Simpson Thacher team includes Justin Lungstrum, Ursula Mackey and Andrew Nightingale(Credit), Art Robinson and Ariana Cooper (Capital Markets) and Gary Rice (Bank Regulatory).