| Add to balance / Manage account | User: | Log out |
| Prospect News home > News index > List of issuers A > Headlines for ADT Inc. > News item |
ADT cancels tender offers for up to $300 million notes due 2028, 2032
By Cady Vishniac
Detroit, Dec. 9 – ADT Inc.’s wholly owned subsidiaries, Prime Security Services Borrower, LLC, Prime Finance Inc. and the ADT Security Corp., have terminated tender offers to purchase up to $300 million of outstanding 6¼% second-priority senior secured notes due 2028 (Cusip: 74166MAE6) and 4 7/8% first-priority senior secured notes due 2032 (Cusip: 74166NAA2), according to a news release.
No tendered notes will be purchased, and all tenders will be considered automatically revoked. Tendered notes will be returned promptly.
The offers were terminated after Moody’s Investors Service announced that using its loss-given-default methodology, it had determined that the tender offer on the 2028 notes was reason to consider downgrading ADT’s first-lien debt to B1 from Ba3.
The offers were expected to have been credit positive overall.
The offers commenced on Dec. 4. As previously reported, there is $1.3 billion outstanding of the 6¼% notes and $728,016,000 outstanding of the 4 7/8% notes.
The offers were to be funded with cash on hand.
In September, ADT received $450 million of proceeds from an equity investment in the company by Google and has stated its intention to use these proceeds to reduce debt and fund growth investments in 2020 and beyond.
BNP Paribas Securities Corp. (212 841-3059, 888 210-4358; dl.us.liability.management@us.bnpparibas.com) was the dealer manager on the offer.
D.F. King & Co., Inc. (212 269-5550, 866 796-3328; adt@dfking.com) was the tender and information agent.
ADT is a Boca Raton, Fla.-based provider of home and business security services.
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.