Pinkerton’s Completes Refinancing of Debt

Pinkerton’s, a Van Nuys security and investigative company, said it completed refinancing of its existing senior and subordinated debt that will lower its interest costs but result in a $2.6-million after-tax charge against its second-quarter profit.

Pinkerton’s said it sold $60 million in senior notes to two insurance companies, which were not identified, at a fixed rate of 10.35%. The notes do not require any principal payment for four years.

In April, Pinkerton’s raised $19.3 million in an initial public stock offering and used most of the proceeds to reduce debt. The company said issuance of the new notes allows it to eliminate its remaining $55 million in senior and subordinated debt that carried an average interest rate of 12.4%.

However, the early payment of the debt will result in the second-quarter charge to reflect a writeoff of deferred financing costs related to the old debt, the company said.

Separately, Pinkerton’s said a lawsuit filed against it by Guardsmark was dismissed in a New York court. Guardsmark had objected to Pinkerton’s use of a personality test to screen its security guards, a test that Guardsmark said it was licensed to use.