Interface Security Systems Announces Completion Of $115 Million Notes Offering

ST. LOUIS, June 2, 2014 /PRNewswire/ -- Interface Security Systems ("Interface" or the "Company"), a portfolio company of SunTx Capital Partners, today announced the completion of a $115 million notes offering (the "Offering") by its parent company Interface Master Holdings, Inc.  Proceeds of the Offering will primarily be used to fund the Company's continued growth strategy featuring the multi-location national accounts space, a segment where Interface has experienced unprecedented growth with its unique Internet Protocol ("IP") managed service offering.

Interface, headquartered in St. Louis, Missouri, is the leading national provider of IP managed physical security and secured managed network services, to primarily large, commercial multi-site customers. The Company provides the most comprehensive suite of IP technology-enabled bundled business security solutions in the market.  Physical security solutions include, alarm/event monitoring, interactive video surveillance, managed access control and fire/life safety systems. Secured network services include PCI compliant private managed broadband, managed digital voice and other IP enabled ancillary services.

Michael Shaw, Interface Security Systems Founder and CEO, commented, "Interface is pleased to have closed on this Offering, which garnered significant interest from the investment community. Our unique ability to bundle physical security, video and digital voice over a PCI compliant private managed broadband network is changing the way multi-location retailers procure critical technology for their stores. The proceeds from the Offering will support the Company's continued focus on penetrating this expanding market segment with its unparalleled services."

Craig Jennings, Partner and Chief Financial Officer of SunTx Capital Partners, commented, "Interface continues to strategically raise capital in support of its aggressive growth plan.  The strong reaction to this Offering reflects the tremendous confidence the investment community has in Interface's compelling value proposition, and SunTx is proud to be an investor in and partner to Interface."

John E. Mack III, Director and Co-Head of Investment Banking of Imperial Capital, LLC commented, "This transaction demonstrates strong investor confidence in Interface's compelling value proposition and is an exceptional example of the combined strength of Imperial Capital's leadership in investment banking services to the Security Industry coupled with our strong Capital Markets capabilities.  Interface and SunTx are long-term client relationships for Imperial Capital and we were thrilled to lead the execution of a very well-received Notes offering. As the leaders in a break-out new category for business services at the convergence of physical and network security, Interface is positioned for extraordinary success.  We look forward to continuing our support of the Company as it grows."  

Imperial Capital, LLC advised Interface and acted as sole book runner for the Offering with Akin Gump Strauss Hauer & Feld LLP providing legal counsel.

The Notes have not been registered under the Securities Act of 1933 (the "Act") or the securities laws of any other jurisdiction and may not be offered or sold in the United States absent registration or an applicable exemption therefrom.  The Notes were offered only to qualified institutional buyers in reliance Rule 144A under the Act and to certain non-US persons outside the United States in reliance on Regulation S under the Act.

About Interface Security Systems
Interface Systems is a cloud based managed security services company headquartered in St. Louis, Missouri. Interface manages a broad range of secure, IP-based security solutions for retail, commercial and small business customers as well as remote interactive video surveillance. The Company operates two UL Approved 5-Diamond CSAA Certified Secure Operations Centers and a nationwide service delivery infrastructure. Interface is a portfolio company of SunTx Capital Partners. For more information on Interface, visit www.interfacesystems.com.

About SunTx Capital Partners
SunTx Capital Partners, LP, is a Dallas-based private equity firm that invests in middle market manufacturing, distribution and service companies. SunTx specializes in supporting talented management teams in industries where SunTx can apply is operational experience and financial expertise to build leading middle-market companies with operations typically in the Sun Belt region of the United States. SunTx was founded in 2001 and currently has over $600 million of assets under management. The capital committed by SunTx comes from the principals of SunTx as well as from institutional investors, including leading university endowments and corporate and public pension funds. More information about SunTx can be found at www.suntx.com.

Media Contact:
Daniel Yunger
Kekst and Company 
212.521.4879

SOURCE SunTx Capital Partners, LP