By Paul A. Harris
Portland, Ore., July 1 – Vivint Smart Home Inc. priced a downsized $800 million issue of eight-year senior notes (Caa1/CCC) at par to yield 5¾% on Thursday, according to market sources.
The yield printed at the tight end of the 5¾% to 6% yield talk and tighter than early guidance in the low 6% area.
The issue size decreased from $900 million with the shift of $100 million of proceeds to the term loan.
That downsize notwithstanding, the bond deal was heard to be three-times oversubscribed, a trader said.
Credit Suisse Securities (USA) LLC was the left bookrunner. Joint bookrunners were BofA Securities Inc., Citigroup Global Markets Inc., Citizens Capital Markets Inc., Deutsche Bank Securities Inc., Goldman Sachs & Co. LLC, J.P. Morgan Securities LLC, HSBC Securities (USA) Inc., Mizuho Securities USA Inc. and RBC Capital Markets LLC.
The issuing entity is APX Group, Inc., a wholly owned subsidiary of Vivint.
The Provo, Utah-based smart home services provider plans to use the proceeds plus proceeds from new senior secured credit facilities to redeem all $677 million of its 7 7/8% senior secured notes due 2022, all $400 million of its 7 5/8% senior notes due 2023 and all $225 million of its 8½% senior secured notes due 2024 and to pay off all of its existing credit facilities.
| Issuer: | APX Group, Inc.
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| Amount: | $800 million
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| Maturity: | July 15, 2029
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| Securities: | Senior notes
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| Left bookrunner: | Credit Suisse Securities (USA) LLC
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| Joint bookrunners: | BofA Securities Inc., Citigroup Global Markets Inc., Citizens Capital Markets Inc., Deutsche Bank Securities Inc., Goldman Sachs & Co. LLC, J.P. Morgan Securities LLC, HSBC Securities (USA) Inc., Mizuho Securities USA Inc. and RBC Capital Markets LLC
|
| Co-manager: | Blackstone
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| Coupon: | 5¾%
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| Price: | Par
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| Yield: | 5¾%
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| Spread: | 440 bps
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| First call: | July 15, 2024 at 102.875
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| Trade date: | July 1
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| Settlement date: | July 9
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| Ratings: | Moody's: Caa1
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| S&P: CCC
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| Distribution: | Rule 144A and Regulation S for life
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| Price talk: | 5¾% to 6%
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| Marketing: | Roadshow
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