GHS gets $50m credit facility

Expansion into Texas, Arizona planned
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Wednesday, September 9, 2015

WOODLAND HILLS, Calif.—GHS Interactive Security, a provider of integrated security services for the residential and light commercial end markets, has secured a $50 million credit facility.

The funding will be used, in part, to expand into Austin, Texas, Houston and Phoenix this year.

GHS currently has accounts in California.

The credit facility was led by AB Private Credit Investors.

“The recurring revenue nature of the business combined with the high quality of GHS’s account origination capabilities makes this an attractive investment opportunity,” Brent Humphries, group head of AB-PCI, said in a prepared statement.

GHS is controlled by New York private equity fund Topspin Partners.

Michael Barnes, a partner in the consulting and advisory firm Barnes Associates, which specializes in the security alarm industry and co-sponsors the Barnes Buchanan Conference, advised Baker and Topspin on the deal.

GHS recently reached $500,000 in RMR, Barnes said, which "was a major milestone for GHS."

"It was time to expand from their initial debt facility. This time, we went looking for something bigger and preferably with a lender that could provide an initial facility of up to $50 million, and then go much, much bigger in future years.  Additionally, we were looking for a group that could go deeper into the capital structure and provide flexibility to GHS around how fast they expanded,” Barnes told Security Systems News

For more on Micheal Barnes' insights into the nontraditional GHS deal, go here.