Bain, Hellman Said to Plan Special Dividend Payment for Verisure

  • Owners may pay themselves dividend of about $550 million
  • Private-equity firms want to refinance in U.S. currency market

The private-equity owners of Verisure Holding AB are planning to borrow an extra 500 million euros ($556 million) against the Swedish security and alarm company to pay themselves a dividend, according to three people with knowledge of the matter.

Bain Capital and Hellman & Friedman, which bought Verisure, then called Securitas Direct, for 2.3 billion euros in 2011, are seeking to refinance the company in the U.S. currency markets, said the people, who asked not to be identified because the information is private. A sale or initial public offering of Verisure was also discussed, two of the people said.

Verisure has debt of about five times the 350 million euros it makes in earnings before interest, taxes, depreciation and amortization, two of the people said. That number will rise to about six and a half times Ebitda after the refinancing, allowing the owners to pay themselves the dividend, they said. No final decision has been made and the refinancing amount may change, they said.

Verisure, which is based in Malmo, Sweden, makes security and energy saving systems for people’s homes including smart-plugs and fire alarms. The company has about 6,500 employees serving a total of 1.8 million customers, according to its website.

A spokesman for Hellman & Friedman declined to comment. Representatives for Bain and Verisure didn’t respond to e-mail requests seeking comment.

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