Alarmguard Holdings, Inc. Announces Completion of Cumulative Convertible Preferred Stock Offering
ORANGE, Conn.--(BUSINESS WIRE)--Feb. 3, 1998--
-- Also Announces Increased Line of Credit -- Alarmguard Holdings, Inc. (AMEX: AGD) today announced that it has completed an offering of 40,000 shares of Cumulative Convertible Preferred Stock at $1,000.00 per share. Gross proceeds to the Company from the offering will be $40,000,000.
Each holder has the right to convert its shares, at the option of the holder, at any time, into shares of the Company's common stock at the conversion price of $8.25 per share, subject to certain anti- dilution provisions. The private placement was managed by Lehman Brothers, and the investor group was led by Advance Capital.
Additionally, the Company announced that its credit facility has been increased from $60 million to $90 million by its lending group consisting of BankBoston as Agent, General Electric Capital Corporation, IBJ Schroder and CIBC Inc. The Company intends to use the net proceeds of the offering as well as the increased line of credit to finance future acquisitions and expand its direct marketing program.
Alarmguard's Chairman and Chief Executive Officer, Russell MacDonnell, commented, "The proceeds from the offering, along with our expanded line of credit, will help support Alarmguard's strategy of increasing our penetration in each market by acquiring key competitors and implementing our proven internal growth programs." Mr. MacDonnell concluded, "As part of that strategy, I am pleased to note that we also recently increased our central station's capacity from 80,000 to 250,000 subscribers."
Alarmguard sells and installs burglar and fire systems and provides security monitoring services and security system repair and maintenance services to homeowners and businesses, principally in the northeast and Mid-Atlantic regions of the United States. Alarmguard provides its security alarm systems and services primarily under its trademark "Alarmguard". |
