Brinks Offering 71 Cents On The Dollar

Should we just act casual as Brinks keeps extending the deadline on their offer to buy back their debt at 71 cents on the dollar leading up to their quarterly earnings report? 🤔


#1, thanks for posting this.

For context, for others, here is the ASCMA most recent press release, offer highlighted below:

Holders of Notes who validly tender (and do not validly withdraw) their Notes prior to the Expiration Time, or who comply with the procedures for guaranteed late delivery in accordance with the instructions described in the Offer to Purchase and the Notice of Guaranteed Delivery, will be eligible to receive, in cash, the purchase price of $710.32 for each $1,000 principal amount of Notes that are accepted for payment pursuant to the Offer, plus accrued and unpaid interest thereon from the last interest payment date up to, but not including, the initial settlement date, which is expected to be March 19, 2019 (the “Settlement Date”). [Emphasis Added]

What's the alternative for those who do not accept? :)

Is ASCMA/Monitronics/Moni/BrinksHome prepping for sale? Who would want it? What do they have to sale? Do the assets outweigh the liabilities? What don’t we know? Any surprises?

Is ASCMA/Monitronics/Moni/BrinksHome prepping for sale?

I think they are trying not to go bankrupt, that's a risk the 'offer to purchase' document indicates:

They are offering 71 cents on the dollar now but in a month from now, the investors risk getting even less.

On the other hand, only a fraction of these notes have taken the offer:

D.F. King & Co., Inc. has advised Ascent that, as of 5:00 p.m., New York City Time on March 11, 2019, holders of an aggregate of $287,000 in principal amount of the Notes, representing approximately 1.36% of the aggregate outstanding principal amount of the Notes, have validly tendered and not validly withdrawn their Notes in the Offer.

So, evidently, either the holders think Brinks will be able to repay or at least more than 71 cents on the dollar.

Seems like Brinks Security is about as well run and well managed as their armored car business.

In fairness to the real Brinks, ASCMA just licensed, i.e., rented the Brinks brand for its home security operations, replacing MONI:

MONI expects to pay first-year royalties of approximately $5 million. The agreement provides for an initial term of seven years and, subject to certain conditions, allows for subsequent renewal periods whereby MONI can extend the agreement beyond 20 years.

It does not seem that the problems of Brinks Home Security, aka MONI, aka ASCMA, has had much mainstream negative impact on the real Brinks, at least yet.

looks like the bottom dropped out at Brinks...

Update: the company has upped its offer and it has been accepted by nearly 90% of the notes outstanding:

$950.00 for each $1,000 principal amount of Notes with no accrued and unpaid interest to be payable

Ascent also announced that holders of approximately $18,554,000 in aggregate principal amount of the Notes, representing approximately 87.9% of the aggregate outstanding principal amount of the Notes, have entered into transaction support agreements with Ascent,

If I am reading what I believe is the original note prospectus, interest is paid twice a year, most recently on January 15th, so not paying interest for 2 months or so will not be a significant additional hit.

Q4 earnings released. Read to the end... If they file chapter 11, this is going to have painful implications for the home security industry. Manufacturers, distributors, and dealers will be impacted.