American Securities-backed by ViaPath Technologies, a provider of telephone services to prison inmates, has hired Texas Capital Bank as it looks to refinance around $1.4bn of existing debt, according to a report by Bloomberg.
The report cites people with knowledge of the matter as confirming that ViaPath has been in discussions with private credit companies over refinancing up to $1bn of debt that matures in 2025, as well as asking existing lenders for an extension to its existing facilities.
According to Bloomberg’s sources, some new lenders have been put off from providing cash due to the perceived reputational risk of investing in a business that profits from prisoners.
Rival company Avenive Technologies, which is backed by Platinum Equity, encountered similar problems when refinancing its debt and subsequently reached a deal with that stipulates selling itself next year.
