By Paul A. Harris
Portland, Ore., March 21 – ADT Corp. priced $1.5 billion of first priority senior secured bullet notes (Ba3/BB-) in two evenly split tranches on Thursday, according a market source.
The deal included a $750 million tranche of five-year notes that priced at par to yield 5¼%. The yield printed in the middle of yield talk in the 5¼% area and tighter than initial talk in the 5½% area.
ADT also priced a $750 million tranche of seven-year notes at par to yield 5¾%. The yield printed in the middle of yield talk in the 5¾% area and tighter than initial talk in the 6% area.
The Boca Raton, Fla.-based security services company withdrew a $1.25 billion tranche of unsecured notes that had been talked at 7½% to 7¾%, downsizing the overall transaction to $1.5 billion from $2.75 billion.
The two tranches of secured notes, which priced Thursday afternoon, were heard to be playing to around $2 billion of orders across both tranches on Thursday morning, a trader said.
Deutsche Bank Securities Inc., Barclays, Citigroup Global Markets Inc. and RBC Capital Markets LLC were the joint bookrunners.
Proceeds will be used to repay debt.
Issuer: | ADT Corp.
|
Amount: | $1.5 billion
|
Securities: | First priority senior secured notes
|
Bookrunners: | Deutsche Bank Securities Inc., Barclays, Citigroup Global Markets Inc. and RBC Capital Markets LLC
|
Trade date: | March 21
|
Ratings: | Moody's: Ba3
|
| S&P: BB-
|
Distribution: | Rule 144A for life
|
Marketing: | Roadshow
|
|
Five-year notes
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Amount: | $750 million
|
Maturity: | Five years
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Coupon: | 5¼%
|
Price: | Par
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Yield: | 5¼%
|
Call protection: | Non-callable
|
Price talk: | 5¼% area
|
|
Seven-year notes
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Amount: | $750 million
|
Maturity: | Seven years
|
Coupon: | 5¾%
|
Price: | Par
|
Yield: | 5¾%
|
Call protection: | Non-callable
|
Price talk: | 5¾% area
|
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