By Paul A. Harris
Portland, Ore., July 27 – Vivint, Inc. priced a restructured $400 million issue of senior notes due Sept. 1, 2023 (Caa2/CCC) at par to yield 7 5/8% on Thursday, according to market sources.
The maturity of the notes was decreased from seven years. Call protection was decreased to two years from three years.
There were also covenant changes.
The yield printed at the tight end of yield talk in the 7¾% area. Prior to restructuring, the former seven-year offer had been talked in the 8% area, sources said.
BofA Merrill Lynch, Credit Suisse Securities (USA) LLC, Citigroup Global Markets Inc., Deutsche Bank Securities Inc., Goldman Sachs & Co., Macquarie Capital, HSBC Bank, Mizuho Securities, Citizens Bank and Guggenheim were the joint bookrunners.
The issuing entity is APX Group, Inc., a wholly owned subsidiary of Vivint parent APX Group Holdings, Inc.
Proceeds will be used to redeem up to $150 million of the 6 3/8% senior secured notes due 2019 and for general corporate purposes, including repayment of the revolving credit facility.
| Issuer: | APX Group, Inc.
|
| Amount: | $400 million
|
| Maturity: | Sept. 1, 2023, maturity decreased from seven years
|
| Securities: | Senior notes
|
| Bookrunners: | BofA Merrill Lynch, Credit Suisse Securities (USA) LLC, Citigroup Global Markets Inc., Deutsche Bank Securities Inc., Goldman Sachs & Co., Macquarie Capital, HSBC Bank, Mizuho Securities, Citizens Bank and Guggenheim
|
| Coupon: | 7 5/8%
|
| Price: | Par
|
| Yield: | 7 5/8%
|
| Spread: | 560 bps
|
| Call protection: | Two years, decreased from three years
|
| Trade date: | July 27
|
| Settlement date: | Aug. 10
|
| Ratings: | Moody's: Caa2
|
| S&P: CCC
|
| Distribution: | Rule 144A with registration rights
|
| Price talk: | 7¾% area
|
| Marketing: | Roadshow
|
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