Vivint sets price talk for $1.31 billion two-part offering of notes

By Paul A. Harris

Portland, Ore., Nov. 6 - Vivint, Inc. set price talk on Tuesday for its $1,305,000,000 two-part offering of notes, according to a syndicate source.

A $925 million tranche of seven-year senior secured notes (B1/B) is talked to yield 6¼% to 6½%.

A $380 million tranche of eight-year senior unsecured notes (Caa1/CCC+) is talked to yield 8½% to 8¾%.

The books close at 5 p.m. ET on Tuesday. Pricing is set for Wednesday morning.

Bank of America Merrill Lynch, Citigroup Global Markets Inc., Deutsche Bank Securities Inc., Morgan Stanley & Co. LLC, Credit Suisse Securities (USA) LLC, Macquarie Capital and Goldman Sachs & Co. are the joint bookrunners for the Rule 144A with registration rights transaction.

The eight-year unsecured notes come with three years of call protection.

The seven-year secured notes also come with three years of call protection. However a special call provision will allow the company to redeem 10% of the secured notes annually at 103 during the non-call period.

Proceeds will be used to fund the acquisition of the company by Blackstone Group.

The issuing entity is 313 Group, Inc., which is to be merged with and into APX Group, Inc., the parent of Vivint, a Provo, Utah-based home security services provider.

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