Platinum Equity’s Prison Phone Firm Reports Improved Earnings

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Platinum Equity-backed prison phone and tablet company Aventiv Technologies LLC reported an improvement in quarterly earnings, according to people with knowledge of the matter, as the firm struggles to refinance its upcoming maturities.

Aventiv, the parent company of brands including Securus Technologies and JPay, reported $156 million in revenue in the second quarter ended June 30, up about 5% year-over-year, said the people, who asked not to be identified because the company is private. Adjusted earnings before interest, taxes, depreciation and amortization came in at $66 million, up about 18% from the comparable period last year.

The improvement in earnings is a bright spot for the company that’s running short on time to address its looming debt maturities. Aventiv’s revolving credit facility, of which $190 million was drawn as of the end of last year, comes due August 2024. Most firms try to refinance debt at least one year in advance.

Its loan due November 2024 is currently trading at 83 cents on the dollar, according to data compiled by Bloomberg. A limited pool of debt buyers are willing to participate in financing deals by prison-related businesses due to concerns over environmental, social, and governance factors.

 

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