By Lisa Kerner
Charlotte, N.C., Oct. 19 – APX Group Holdings, Inc. subsidiary APX Group, Inc. issued $300 million of 8.875% senior secured notes due Dec. 1, 2022.
Interest is payable semiannually in arrears on June 1 and Dec. 1, beginning on June 1, 2016, according to an 8-K filed with the Securities and Exchange Commission.
Proceeds will be used to repay outstanding borrowings under the company’s revolving credit facility, and the remaining net proceeds will be used for general corporate purposes.
APX may redeem, at any time and from time to time prior to Dec. 1, 2018, some or all of the notes at par plus accrued interest plus the applicable make-whole premium.
From and after Dec. 1, 2018, the issuer may, at its option, redeem at any time and from time to time some or all of the notes at the applicable redemption prices listed in the note purchase agreement.
On or prior to Dec. 1, 2018, the issuer may redeem up to 35% of the notes with the proceeds from certain equity offerings at a redemption price listed in the agreement.
At any time and from time to time prior to Dec. 1, 2018, the issuer may at its option redeem during each 12-month period up to 10% of the principal amount of the notes at a redemption price equal to 103% of par plus accrued interest.
Upon the occurrence of specific kinds of change of control, if the issuer does not redeem the notes, the holders will have a put option at 101% of par plus accrued interest.
Wilmington Trust, NA is the collateral agent.
APX is an energy exchange operating the spot markets for electricity in the Netherlands, the United Kingdom and Belgium. APX is also the parent holding company of Vivint, Inc., a Provo, Utah-based home security services provider.
| Issuer: | APX Group, Inc.
|
| Issue: | Senior secured notes
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| Amount: | $300 million
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| Coupon: | 8.875%
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| Maturity: | Dec. 1, 2022
|
| Call option: | At par plus make-whole premium prior to Dec. 1, 2018; at applicable redemption prices beginning Dec. 1, 2018; prior to Dec. 1, 2018, up to 10% of notes each year at 103
|
| Equity clawback: | Up to 35% of notes on or prior to Dec. 1, 2018
|
| Put option: | At 101 upon a change of control
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| Settlement date: | Oct. 19
|
| Distribution: | Private placement
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