(Bloomberg) — JPMorgan Chase & Co. is still laboring to sell $1.1 billion of bonds for debt-laden Brinks Home after investors shunned the company’s original offer of a 10% yield for the notes, according to people with knowledge of the matter.
The bank is asking prospective buyers to come up with their own proposals to get a deal done, which may include a higher yield or a different structure, according to the people, who asked not to be named because the discussions are private.
Brinks Home is looking to sell the debt to refinance loans it took to exit bankruptcy two years ago. It had originally aimed to price the offering of seven-year, first-lien bonds on October 13 but struggled to garner interest from investors, Bloomberg previously reported.
Representatives for JPMorgan and Monitronics International Inc., which operates as Brinks Home, declined to comment.
Investors had expressed concerns about the company’s heavy debt burden — which S&P Global Ratings estimates would reach nine times earnings after the refinancing is complete — and difficulty in adapting to the fast-changing and hyper-competitive home security industry.
If completed at the originally marketed terms, the bond sale would extend Monitronics’s debt maturities to 2028 and loosen some of the restrictive creditor safeguards that were embedded in its bankruptcy-exit debt.
Brink’s Co., the cash transportation company known for its armored trucks, in 2008 spun off its home security business, which was later acquired by a unit of Tyco International Ltd. Brink’s Co. has since licensed its brand for the home security market to Monitronics.
(Updates with decline to comment from Monitronics in fourth paragraph and more detail of spin off in last paragraph.)
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