Ascent Capital and Monitronics International announce restructuring support pact
Ascent Capital Group announced that its wholly owned subsidiary Monitronics International has entered into a Restructuring Support Agreement with its largest creditors that will eliminate approximately $885M in debt. Under the terms of the Support Agreement, up to approximately $685M of debt will be converted to equity, including up to approximately $585M of the company's 9.125% Senior Notes due in 2020 and $100M of the company's term loans. The company will also receive an additional $200M in cash from the company's noteholders through an equity rights offering and, subject to certain conditions, from Ascent in connection with the proposed merger with Monitronics which cash will be used to, among other things, repay remaining term loan debt. Following the completion of the restructuring, the Company is currently expected to have approximately $990M of total debt. Recurring Monthly Revenue as of March 31, 2019, was $40.8M. Under the terms of the Support Agreement, Monitronics and its subsidiaries would effectuate the proposed transactions through a partial pre-packaged plan of reorganization under Chapter 11 of the U.S. Bankruptcy Code. The Company has already obtained support for the proposed transactions from holders of approximately 83 percent of its secured term loans and approximately 72% of its senior unsecured notes.