SOURCE: Imperial Capital, LLC

Imperial Capital, LLC

January 22, 2013 09:08 ET

Imperial Capital Acts as Sole Book Runner for $230 Million of Senior Secured Notes and Exclusive Financial Advisor for $45 Million Revolving Line of Credit for Interface Security Systems, LLC

LOS ANGELES, CA--(Marketwire - Jan 22, 2013) - Imperial Capital today announced the successful completion of a $230 million 9 1/4% Senior Secured Notes offering (the "Notes") for Interface Security Systems, LLC ("Interface" or the "Company"), a portfolio company of SunTx Capital Partners. Imperial also served as the exclusive Advisor to Interface in arranging a new $45 million Revolving Credit Facility (the "Revolver"), provided by Capital One, N.A., which was undrawn as of the closing. The proceeds from the Notes were used in part to repay existing indebtedness and, along with the Revolver, can be used to help fund future growth. Interface is the leading national provider of bundled physical security and secured managed network services to primarily large, commercial multi-site customers. The Company believes it provides the most comprehensive internet protocol technology-enabled managed security solution in the market.

"Imperial Capital was an exceptional partner during our successful financing efforts, as we collectively structured and marketed the Notes and negotiated the Revolver. We are extremely pleased with the outcome of the offering. We look forward to strategically allocating the new capital, along with our substantial internal cash flow from operations, to continue growing the business, providing differentiated products and services and gaining market share," said Michael Shaw, Chief Executive Officer of Interface Security Systems LLC.

"The strong execution of the Notes offering reflects the tremendous confidence of the investment community in Interface's value proposition. We thank Imperial Capital for their exceptional assistance and expertise in connection with all elements of the offering. Today's announcement marks an important milestone for all parties involved, and Interface's successful introduction to the institutional investor base. SunTx has been a long term investor and partner of Interface and we look forward to the Company's continued success," said Craig Jennings, Partner of SunTx Capital Partners.

"This transaction was an exceptional example of the combined strength of Imperial Capital's leadership in investment banking services to the Security Industry coupled with our strong Capital Markets capabilities. Interface and SunTx are long-term client relationships for Imperial Capital and we were thrilled to lead the execution of a very well-received financing. Interface, as the leader in a break-out new category for business services at the convergence of physical and network security, is positioned for extraordinary success. We look forward to continuing our support of the Company as it grows," added John E. Mack III, Managing Director and Co-Head of Investment Banking. 

The Notes have not been registered under the Securities Act of 1933 (the "Act") or the securities laws of any other jurisdiction and may not be offered or sold in the United States absent registration or an applicable exemption therefrom. The Notes were offered only to qualified institutional buyers in reliance Rule 144A under the Act and to certain non-US persons outside the United States in reliance on Regulation S under the Act.

About Imperial Capital, LLC

Imperial Capital, founded in 1997, is a full-service investment banking firm with offices in Los Angeles, New York, San Francisco, Minneapolis, Boston, Chicago & McLean. The firm currently employs over 230 professionals and offers a wide range of proprietary products and services to institutional investors, middle market companies and private equity firms. Imperial Capital provides institutional clients research and sales and trading of high yield and distressed debt securities, bank debt, convertible bonds, preferred stocks, and equities. The firm provides middle market companies and financial sponsors with capital markets, merger and acquisitions, capital structure, restructuring and recapitalization advisory services. More information about Imperial Capital can be found at www.imperialcapital.com.

About Interface Security Systems, LLC

Interface Security Systems, LLC is a managed service company based in St. Louis, Missouri. Interface manages a broad range of secure, IP-based solutions for retail, commercial, small business and residential customers through a UL Listed Secure Operations Center and a nationwide full service branch network. Interface is a portfolio company of SunTx Capital Partners. For more information on Interface, visit www.interfacesystems.com.

About SunTx Capital Partners

SunTx Capital Partners, LP, is a private equity investment partnership that works closely with management teams to buy and build middle market companies. Founded in 2000, and headquartered in Dallas, SunTx has approximately $600 million of assets under management. The capital committed by SunTx comes from the principals of SunTx as well as from institutional investors, including leading university endowments and corporate and public pension funds.

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