By Paul A. Harris
Portland, Ore., Aug. 6 – ADT Inc. priced an upsized $1 billion issue of seven-year first-lien senior secured bullet notes (Ba3/BB-) at par to yield 3 3/8% in a Thursday drive-by, according to market sources.
The issue size increased from $750 million.
The yield printed 12.5 basis points inside of the tight end of the 3½% to 3¾% yield talk. Initial talk had the deal coming to yield in the 4% area.
Deutsche Bank Securities LLC, Barclays, Citigroup Global Markets Inc., Mizuho Securities USA Inc., RBC Capital Markets Corp. and Goldman Sachs & Co. LLC were the joint bookrunners.
The Boca Raton, Fla.-based residential and commercial security services provider plans to use the proceeds to repay the ADT Security Corp. 6¼% senior notes due 2021.
| Issuers: | Prime Security Services Borrower, LLC and Prime Finance Inc.
|
| Issue: | First-priority senior secured notes
|
| Amount: | $1 billion, increased from $750 million
|
| Tenor: | 2027
|
| Bookrunners: | Deutsche Bank Securities Inc., Barclays, Citigroup Global Markets Inc., Mizuho Securities USA Inc., RBC Capital Markets Corp. and Goldman Sachs & Co. LLC
|
| Coupon: | 3 3/8%
|
| Price: | Par
|
| Yield: | 3 3/8%
|
| Call protection: | Non-callable
|
| Trade date: | Aug. 6
|
| Settlement date: | Aug. 20
|
| Ratings: | Moody's: Ba3
|
| S&P: BB-
|
| Distribution: | Rule 144A and Regulation S
|
| Price talk: | 3½% to 3¾%
|
| Marketing: | Drive-by
|
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