Moody’s changes Prime Security to positive

Moody's Investors Service said it changed the outlook of Prime Security Services Borrower, LLC (ADT Corp.) to positive from stable after the company's recent announcement that it plans to conduct an initial public offering of its stock through which it expects to raise between $1.9 billion and $2.2 billion.

IPO proceeds are expected to be used to pay down debt.

The agency also assigned a speculative grade liquidity rating of SGL-2 and affirmed the company’s ratings, including its B1 corporate family rating and B1-PD probability of default rating, and the respective Ba3 and B3 ratings on its first- and second-lien debt issuances.

“The positive ratings outlook reflects the meaningfully improved leverage metrics that will result from the application of IPO proceeds to pay down roughly $1.8 billion of ADT's high-cost debt, and the expectation for further improvements in operating metrics and profitability,” Moody’s said in a news release.

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