By Paul A. Harris
Portland, Ore., April 26 – APX Group, Inc., the parent of Vivint Inc., priced a downsized $225 million issue of 5.5-year senior notes (B2/B-) at par to yield 8½% on Friday, according to market sources.
The issue size decreased from $250 million.
The yield printed wide of guidance in the 8¼% area, a trader said.
The deal, which kicked off as a drive-by in the early part of the April 22 week, was held over in the market.
BofA Merrill Lynch was the left bookrunner. Citigroup Global Markets Inc., Citizens Bank, Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., Goldman Sachs & Co. LLC, Macquarie Capital (USA) Inc., HSBC Securities (USA) Inc., Mizhuo Securities USA Inc. and Guggenheim were the joint bookrunners.
The Provo, Utah, home automation services provider plans to use the proceeds to redeem $250 million of its 8¾% senior notes due 2020, with any remaining proceeds to be used for general corporate purposes.
| Issuer: | APX Group, Inc.
|
| Amount: | $225 million, decreased from $250 million
|
| Maturity: | Nov. 1, 2024
|
| Left bookrunner: | BofA Merrill Lynch
|
| Joint bookrunners: | Citigroup Global Markets Inc., Citizens Bank, Credit Suisse Securities (USA) LLC, Deutsche Bank Securities Inc., Goldman Sachs & Co. LLC, Macquarie Capital (USA) Inc., HSBC Securities (USA) Inc., Mizuho Securities USA Inc. and Guggenheim
|
| Co-manager: | Blackstone
|
| Coupon: | 8½%
|
| Price: | Par
|
| Yield: | 8½%
|
| Spread: | 619 bps
|
| Call protection: | Two years
|
| Trade date: | April 26
|
| Settlement date: | May 10
|
| Ratings: | Moody's: B2
|
| S&P: B-
|
| Distribution: | Rule 144A with registration rights
|
| Guidance: | 8¼% area
|
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