Debt-Laden Brinks Home Security Struggles to Sell 10% Junk Bonds
(Bloomberg) -- Brinks Home Security is laboring to find enough buyers for a $1.1 billion bond sale to refinance loans the company took to exit bankruptcy two years ago, according to people with knowledge of the matter.
The heavily indebted alarm company, operated by Monitronics International Inc., marketed the seven-year bonds at a yield of around 10%. As of Wednesday, it had received orders falling short of the offering’s size, said one of the people, who asked not to be named when talking about a private transaction.
JPMorgan Chase & Co., manager of the sale, has solicited offers from investors at higher yields in an attempt to salvage the transaction, the people said. The bonds were originally expected to price on Wednesday.
Representatives for JPMorgan and Monitronics declined to comment.
Recent weakness in the U.S. junk bond market, where yields have reached their highest since March, compounded concerns investors already had about the company’s debt load in an industry with stiff competition and high customer turnover, according to the people.
If completed at the originally marketed terms, the bond sale would extend Brinks’s debt maturities to 2028 and loosen some of the restrictive creditor safeguards that were embedded in its bankruptcy-exit debt.
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