Select Security closes $8m credit facility

Thursday, August 28, 2008

LANCASTER, Pa.--Select Security president Pat Egan told Security Systems News on Aug. 26 that he decided to announce the closing of an $8 million credit facility so that sellers know he's in the market.
"It's a small deal, the beginning of a larger facility," he said. "We want to let people in the Mid-Atlantic region know that we are an active buyer in this marketplace," he said.
The housing downturn has been especially tough on the smaller dealer, he said, and many of those dealers who've been contemplating a sale may decide to sell sooner rather than later. "There are a lot of different reasons why people decide to sell: the break-up of a partnership, they want to retire or they're just tired," Egan said.
Sales may also be propelled by the fact that the capital gains tax is currently low, and that's a tax that may increase with a change in administrations, Egan said.
Egan's footprint is currently Pennsylvania, but he's now looking outside of the Commonwealth, targeting Maryland, West Virginia, and Virginia. His niche is as a "major provider in small markets ... you won't see us in Baltimore or Philly, but you will see us in the 'burbs," he said.
The credit facility is with Bank of America in Chicago (for more details, search "BoA renews LaSalle's commitment to security" at Egan said Bank of America is normally known for making very large loans, but they will make "smaller deals if it makes sense for them." For those seeking credit, he said "the covenants are a little different ... you really have to have your house in order to get the deal done."