Sector Alarm Readies A&E Supported by Additional €75M Equity Injection; Raises FY’24 Budget on Back of Q1 Outperformance

Reporting: Robert Schach Norwegian home security system group Sector Alarm is pre-sounding lenders over an amend-and-extend transaction to term out its €100 million RCF and €590 million term loan B by three years supported by an additional €75 million of equity from shareholders, sources said. The transaction will push out the maturity of the RCF to January 2029 and the TLB to June 2029. Sector Alarm plans to use the additional equity contribution to pay down its RCF in full and boost cash on the balance sheet to €25 million. The extended term RCF would remain subject to its 9.2x springing net leverage covenant when more than 40% drawn. The company is marketing the deal at 5.7x total net leverage based on €108 million L2QA adjusted EBITDA, pro forma for the additional equity injection. Sector Alarm outperformed in the first quarter. Revenue grew 13% year over year to 941 million Norwegian kroner (€81 million) versus NOK 917 million budgeted, driven by an 18% rise in new customers. Adjusted EBITDA jumped 47% year over year to NOK 332 million versus NOK 286 million budgeted on the back of top-line growth as well as lower customer acquisition costs, which fell 10% year[...]