Security Networks doubles its credit facility
WEST PALM BEACH--Security Networks closed July 21 on a new credit facility, which doubled the super-regional's operating limit from $50 million to $100 million.
"We're excited to have accomplished this in this [competitive] credit environment," said Security Networks CEO Rich Perry. "This gives us lots of dry powder to continue to execute our growth model," he added.
Security Networks has worked with Fortress Capital, a Manhattan hedge fund, for several years. With this deal, Goldman Sachs is now a co-lender with Fortress, Perry explained.
The funds will be used to "continue to grow our affiliate program--that's our organic growth strategy, and the program has grown steadily over the past couple of years to more than 50 active affiliates in the program today." Funds will also be used for acquisitions. "We'll do those on an opportunistic basis, as deals come along, if they make sense for us and our in our markets," he said.
The company is in 28 markets in 15 states, mostly East of the Mississippi, although it did recently enter Texas.
Security Networks has abut 45,000 retail accounts and its run rate this year is about $20 million, but "we may end up exceeding that as we grow incrementally between now and the end of the year," Perry said. Within the next two- to three years he expects to "double the size of our account base and double revenues as well."