Moon Security closes new line of credit
PASCO, Wash.—Moon Security Services went to a new source, CapitalSource, to secure a $5 million three-year revolving line of credit.
Mike Miller, VP of Moon Security, a full-service security company based here, told Security Systems News in early January that the loan will be used, in part, to refinance an existing loan.
“We were also able to get an additional line of credit which we’ll use for working capital and for future acquisitions,” he said. He added: “We don’t have any acquisitions in mind just yet, but it gives us flexibility moving forward.”
A full-service security company that’s two-thirds commercial and one-third residential, Moon Security has been a family-run business since 1957.
It has 120 employees, four branch offices and does work in Washington, Oregon, Idaho, parts of Montana and “onesie-twosies in Alaska,” Miller said.
It has more than 5,000 accounts and a U.L.-listed central station. “We do a lot of camera work and a lot of fire,” Miller said. Moon installs 30 to 50 systems per month.
Miller said an acquisition target would be a company within its geographic footprint with $5,000 to $50,000 in RMR.
Bill Polk, managing director of security commercial finance for CapitalSource, called Mike Miller “a well respected guy who ran the NBFAA [now Electronic Security Association, ESA] and runs a nice business in the Northwest. We like that he’s talented on a number of levels.”
This is not CapitalSource’s first deal of the year, but it’s the first announced deal, Polk said. “We’re doing more transactions in the $1 (million) to $10 million range and this one is right down the middle,” he said.
CapitalSource announced in early 2010 that it would begin making loans at the $1 million to $10 million loan level. “It’s an underserved part of the market. We have the bench to focus on it. We did a half dozen of these deals last year and we expect to do a lot more in 2011,” Polk said.