Vivint talks $350 million secured notes due 2022 to yield 7¾%-8%; books close Thursday afternoon

By Paul A. Harris

Portland, Ore., May 18 – APX Group, Inc., the holding company of Vivint, Inc., talked its $350 million offering of senior secured notes due Dec. 1, 2022 (B1/B) to yield 7¾% to 8%, according to a syndicate source.

Official talk comes tight to the 8% initial guidance, a market source said.

Books close at 11 a.m. ET on Thursday, and the Rule 144A and Regulation S with registration rights offering is set to price thereafter.

Credit Suisse Securities (USA) LLC, HSBC, Macquarie Capital and Mizuho are joint bookrunners. Other syndicate names are expected to be announced at a later time.

The notes have the same maturity as the existing 8 7/8% senior secured notes, which came in a $300 million private placement late last year.

The securities are non-callable before Dec. 1, 2018. A special call provision allows the company to redeem up to 10% of the notes annually at 103 during the non-call period. The notes also feature a 35% equity clawback until Dec. 1, 2018 and a 101% poison put.

Proceeds will be used for general corporate purposes and for refinancing existing secured debt.

The prospective issuer is a Provo, Utah-based home security services provider.

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