(Bloomberg) -- Private credit firms have held discussions to provide a new loan to Brinks Home, which would refinance the company’s debt, according to people with knowledge of the matter.
The home security system company, formerly known as Monitronics International Inc., exited chapter 11 bankruptcy proceedings last year. It’s seeking a $725 million debt facility from direct lenders, including a $625 million term loan and a $100 million revolver, the people said, asking not to be identified discussing a private transaction.
Morgan Stanley is arranging the deal, the people added. More banks have been trying to get in on the private credit boom, through tie-ups and matchmaking efforts with direct lending firms.
Pricing on the deal is being discussed at between 5.5 and 6 percentage points over the Secured Overnight Financing Rate, and 98.5 original issue discount, the people also said.
Representatives for Morgan Stanley and Brinks Home declined to comment, as did those for Invesco Ltd., who became one of the principal equity owners of Monitronics in its bankruptcy. Monarch Alternative Capital, another principal equity owner, did not respond to requests for comment.
The deal would refinance some of the company’s existing debt. Brinks Home emerged from bankruptcy in July of last year, after eliminating around $500 million of debt.
Some more complex credit seekers have opted for the private credit route in recent months, as the broadly syndicated market continues to be risk averse.
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