Ascent Capital Group Announces Proposed Offering by Monitronics Escrow Corporation of $150 Million of Senior Notes Due 2020

GREENWOOD VILLAGE, Colo.--(BUSINESS WIRE)--Ascent Capital Group, Inc. ("Ascent" or the "Company") (Nasdaq: ASCMA) announced today that its wholly-owned subsidiary, Monitronics Escrow Corporation (the "Escrow Issuer"), intends to offer $150 million in aggregate principal amount of 9.125% senior notes due 2020 (the "Notes"), subject to market and other conditions. If the Notes are issued, the proceeds of this offering would be placed into escrow and will be used, together with proceeds of other indebtedness expected to be issued by Ascent, and an expected $225 million new term loan of Monitronics International, Inc., the wholly-owned operating subsidiary of Ascent ("Monitronics"), for the purpose of funding a portion of the purchase price for the previously announced acquisition (the "Acquisition") of Security Networks, LLC ("Security Networks") by Monitronics. In connection with the completion of the Acquisition, the Escrow Issuer would be merged into Monitronics, and Monitronics would assume the Notes (the "Assumption") under its existing Indenture, dated March 23, 2012, pursuant to which its existing 9.125% senior notes due 2020 are outstanding. If the Acquisition is not completed by an agreed upon end date, the proceeds of the offering would be used to make a mandatory redemption of the Notes.