Securus inks £30m deal with Muzinich and RBS

The facility refinances and increases the security servicing and installation firm’s debt, replacing old senior and mezz lines with an extendable unitranche deal and revolving working capital line.

UK security services firm Securus Group has signed a £25 million ($36 million; €32 million) unitranche deal with Muzinich & Co, the first facility provided from the lender’s UK Private Debt Fund. 

The Muzinich unitranche was arranged alongside a £5 million revolving working capital facility provided by Royal Bank of Scotland. The £30 million financing package will refinance the company’s existing senior and mezzanine credit facilities as well as providing the firm with extra firepower for growth and acquisitions. 

The £25 million unitranche is split between a £20 million six-year bullet loan and a £5 million accordion facility, which will allow the company to increase the loan should it wish to draw on extra capital. The new financing leaves Securus 4-5x levered. 

The deal increased the company’s available credit lines and reduced its overall cost of capital as more expensive mezzanine facilities were replaced, said a source close to the deal. 

Securus Group is majority-owned by Infinity Asset Management with management, led by managing director Stuart Glover, holding a substantial interest in the firm. Most of the company’s leadership are experienced security engineers who spied an opportunity to grow a servicing business focused on security servicing and installation. 

The company has grown from producing EBITDA of around £400,000 to £6 million through growth and 10 acquisitions of other small servicing firms. 

There was no debt advisor on the deal and Muzinich sourced it through its relationship with the sponsor, Infinity, and the borrower’s management. 

“With Muzinich & Co as a long-term financing partner, aligned to our strategy, we will be able to accelerate our growth plans and capitalise upon the opportunity in our market, creating the leading independent national provider of electronic security and life safety systems,” said Securus’ Glover.

Muzinich reached a first close of £185 million on its debut UK Private Debt Fund in January. The vehicle is targeting £350 million in commitments and extends loans to UK businesses with EBITDA of £3 million-£20 million.
Financial due diligence on the deal was performed by RSM. DLA Piper provided legal advice to Muzinich, while Addleshaw Goddard advised RBS. Nexus advised the borrower. 

Securus Group is headquartered in Manchester. The firm provides electronic security and life safety systems, specialising in installation, maintenance and monitoring.

Legal advice was provided to Muzinich & Co by DLA Piper (Matt Christmas and Chris Lister), RBS by Addleshaw Goddard (Martin O’Shea) and management by Nexus (Jamie Lloyd).