Select Security gets $25m-plus in financing
LANCASTER, Pa.—Select Security, based here, has received a $25 million senior secured facility from Citizens Commercial Banking, a division of Citizens Financial Group, also based here.
Additionally, the super-regional security provider received a $10 million accordion feature in the deal, according to company founder Pat Egan.
“We now have financing in place to close a pending acquisition, for new account creation and for our general working capital needs,” Egan told Security Systems News.
“For a company like ours to secure a facility, the biggest we’ve ever had, and close it in three weeks is a tribute to the documentation process and Select’s portfolio,” Egan said.
Select Security has 20,000 customers, $820,000 in RMR and more than $19 million in annual sales, Egan said.
The fact that Citizens understands RMR made it the right financing partner for his company, he said.
“From cradle to grave they closed this deal in three weeks,” he said.
Understanding RMR was the key to the deal, agreed Greg Buscone, senior vice president and market manager of specialized banking at Citizens Commercial Banking. He manages the security alarm group for the bank.
“There’s probably six to 10 banks around the country that understand how to lend to these companies,” Buscone told Security Systems News.
Select Security installs and monitors burglar, fire, smoke and video equipment in homes and commercial properties.
Select Security worked with Citizen's director of specialized banking, David O'Brien, when O'Brien was at Bank of America Merrill Lynch. O'Brien was instrumental in sealing the deal, both Egan and Buscone said.