Security Associates Announces Completion of New Financing

Apr 23, 2001, 01:00 ET from Security Associates International, Inc.

    ARLINGTON HEIGHTS, Ill., April 23 /PRNewswire Interactive News Release/ --
     Security Associates International, Inc. (Amex:   SAI) (SAI), the largest
 wholesale security alarm monitoring company in the United States, today
 announced it has completed a $24,840,000 financing which replaces its previous
 lenders and has made an additional $5.6 million available since
 January 1, 2001 for operations and capital projects.
     The new loan, between McGinn, Smith Acceptance Corp. and SAI Funding
 Corporation, a wholly owned subsidiary of Security Associates International,
 Inc., is collateralized by a security interest in eligible accounts receivable
 and related monitoring contracts.  It has a final maturity in August 2006.
     The $24,800,000 credit facility includes an original issue discount of
 $2,340,000, which will be amortized over the life of the transaction and a
 mandatory debt service reserve of $500,000.  A $19,000,000 senior tranche
 bears interest at 10 1/2% per annum, while a junior tranche of $5,480,000
 carries interest of 12 1/2%.
     According to James S. Brannen, President, "this new facility assures that
 the company will have adequate funds for operations and completion of the
 current central station optimization plan.  Management believes that these
 efforts will lead to positive cash flows after debt service in the third
 quarter."
     SAI provides security alarm monitoring services to residences and
 businesses, including more than 375,000 accounts owned by 2500+ independent
 security alarm installing and servicing dealers.  SAI maintains the largest
 independent dealer network in the country.  The Company operates 8 regional
 UL-Listed Central Station Monitoring Stations strategically located throughout
 the U.S.
     Certain statements contained herein that are not historical facts
 constitute "forward-looking statements" within the meaning of the Federal
 Securities Laws.  In addition, when used herein the words "anticipates,"
 "intends," "seeks," "believes," "estimates," and "expects" and similar
 expressions as they relate to the Company or its management are intended to
 identify such forward-looking statements.  Such statements are subject to a
 number of risks and uncertainties.  The Company's actual results, performance
 or achievements could differ materially from the results expressed in, or
 implied by, these forward-looking statements.  Factors that could cause or
 contribute to such differences include, but are not limited to, adverse
 economic conditions, changes in corporate strategy, availability of capital
 and intensifying competition.  The Company undertakes no obligation to revise
 these forward-looking statements to reflect any future events or
 circumstances.
 
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SOURCE Security Associates International, Inc.
    ARLINGTON HEIGHTS, Ill., April 23 /PRNewswire Interactive News Release/ --
     Security Associates International, Inc. (Amex:   SAI) (SAI), the largest
 wholesale security alarm monitoring company in the United States, today
 announced it has completed a $24,840,000 financing which replaces its previous
 lenders and has made an additional $5.6 million available since
 January 1, 2001 for operations and capital projects.
     The new loan, between McGinn, Smith Acceptance Corp. and SAI Funding
 Corporation, a wholly owned subsidiary of Security Associates International,
 Inc., is collateralized by a security interest in eligible accounts receivable
 and related monitoring contracts.  It has a final maturity in August 2006.
     The $24,800,000 credit facility includes an original issue discount of
 $2,340,000, which will be amortized over the life of the transaction and a
 mandatory debt service reserve of $500,000.  A $19,000,000 senior tranche
 bears interest at 10 1/2% per annum, while a junior tranche of $5,480,000
 carries interest of 12 1/2%.
     According to James S. Brannen, President, "this new facility assures that
 the company will have adequate funds for operations and completion of the
 current central station optimization plan.  Management believes that these
 efforts will lead to positive cash flows after debt service in the third
 quarter."
     SAI provides security alarm monitoring services to residences and
 businesses, including more than 375,000 accounts owned by 2500+ independent
 security alarm installing and servicing dealers.  SAI maintains the largest
 independent dealer network in the country.  The Company operates 8 regional
 UL-Listed Central Station Monitoring Stations strategically located throughout
 the U.S.
     Certain statements contained herein that are not historical facts
 constitute "forward-looking statements" within the meaning of the Federal
 Securities Laws.  In addition, when used herein the words "anticipates,"
 "intends," "seeks," "believes," "estimates," and "expects" and similar
 expressions as they relate to the Company or its management are intended to
 identify such forward-looking statements.  Such statements are subject to a
 number of risks and uncertainties.  The Company's actual results, performance
 or achievements could differ materially from the results expressed in, or
 implied by, these forward-looking statements.  Factors that could cause or
 contribute to such differences include, but are not limited to, adverse
 economic conditions, changes in corporate strategy, availability of capital
 and intensifying competition.  The Company undertakes no obligation to revise
 these forward-looking statements to reflect any future events or
 circumstances.
 
                      MAKE YOUR OPINION COUNT - Click Here
                http://tbutton.prnewswire.com/prn/11690X58469017
 
 SOURCE  Security Associates International, Inc.