Pinnacle Security Announces Full-Service Security Solution; Closes on $150 Million Senior Financing

OREM, Utah (October 2, 2008) – Pinnacle Security, a leading provider of residential and commercial security systems, today announced that it has closed on a senior debt facility with LaSalle Bank N.A., a wholly owned subsidiary of Bank of America Corporation, and Wells Fargo Foothill, part of Wells Fargo & Company, in the form of a revolving credit facility with up to $150 million in availability. Where previously Pinnacle’s capitalization requirements led to the transfer of customer relationships to other vendors for servicing, this new financing allows Pinnacle to retain the monitoring contracts, marking a new phase in the company’s development.

For Pinnacle, this marks the second important milestone in the company’s growth in the last six months. In May 2008 Pinnacle entered into a partnership with Golden Gate Capital, a San Francisco based private equity firm, to create these types of exciting growth opportunities and transition to a diversified international security company.

“With the backing of Golden Gate Capital’s $9 billion plus of capital we have the financial stability to achieve our long-term growth plan, starting with this watershed credit facility. Even with the current volatility in the lending market the acknowledged strength of Golden Gate Capital allowed us to take this important step as a company. With this financing in place we’re now able to accelerate our international growth plans,” stated Christopher B. Munday, CEO of Pinnacle.

“At Golden Gate Capital we have a long history of growing and supporting companies. Our current fund has more than $5 billion of capital available and we are excited to be able to use that financial strength to support the incredibly exciting growth path that Pinnacle is embarking on. Our capital is firmly committed by our investors and is completely unaffected by the current events in the financial market,” said Prescott Ashe, a Managing Director of Golden Gate Capital.

In addition to the senior debt facility Pinnacle raised a mezzanine facility, further increasing its available funding to grow its business. Kirkland & Ellis LLP provided legal advice to Pinnacle while Mitchell Silberberg & Knupp LLP provided legal advice to LaSalle / Bank of America and Buchalter Nemer provided legal advice to Wells Fargo Foothill.

About Pinnacle

Pinnacle is a leading provider of residential and commercial security systems, focused primarily on direct sales. Pinnacle has sales offices in major metropolitan areas throughout the United States and is expanding internationally. Pinnacle is headquartered in Orem, Utah, where it operates its primary operational and recruiting facility. Pinnacle was founded in 2001. For more information, visit

About Golden Gate Capital

Golden Gate Capital is a San Francisco-based private equity investment firm with approximately $9.0 billion of capital under management. Golden Gate is dedicated to partnering with world-class management teams to invest in change-intensive, growth businesses. The firm targets investments where there is a demonstrable opportunity to significantly enhance a company’s value. The principals of Golden Gate have a long and successful history of investing with management partners across a wide range of industries and transaction types, including leveraged buyouts, recapitalizations, corporate divestitures and spin-offs, build-ups and venture stage investing. For more information, visit