Vivint launches $1.25 billion term loan B at Libor plus 375 bps

By Sara Rosenberg

New York, June 24 – Vivint (APX Group Inc.) held a lender call at 1 p.m. ET on Thursday to launch a $1.25 billion seven-year covenant-lite term loan B that is talked at Libor plus 375 basis points with a 0.5% Libor floor and an original issue discount of 99.5, according to a market source.

The term loan has 101 soft call protection for six months, the source said.

Amortization on the term loan is 1% per annum.

BofA Securities Inc. is the left lead on the deal.

Commitments are due at noon ET on July 1, the source added.

Proceeds will be used with $900 million of other unsecured debt and $140 million of cash from the balance sheet to refinance an existing term loan B, 7.875% senior secured notes due 2022, 8.5% senior secured notes due 2024 and 7.625% senior notes due 2023.

The company also plans on getting a $350 million five-year revolving credit facility.

Pro forma for the transaction, net secured leverage will be 1.9x and net total leverage will be 2.8x.

Vivint is a Provo, Utah-based smart home services provider.

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