ADT units to partially redeem 5¼% secured notes due 2024

By Mary-Katherine Stinson

Lexington, Ky., March 17 – ADT Inc.’s indirect wholly owned subsidiaries, Prime Security Services Borrower, LLC and Prime Finance Inc., announced a partial redemption of their 5¼% first priority senior secured notes due 2024, according to a press release and an 8-K filing with the Securities and Exchange Commission.

The issuers will redeem $150 million of the notes on May 2 at a redemption price expected to be $1,002 per $1,000 principal amount of the notes plus accrued interest.

The final redemption price will be calculated prior to the redemption date based on the provisions of the notes’ indenture.

After the redemption, $600 million of the notes will remain outstanding.

Wells Fargo Bank, NA is the trustee.

The redemption is a part of a $200 million debt paydown, in service of reaching ADT’s goal of reducing net debt by $1 billion by year-end 2025. In addition to this redemption, a $50 million reduction will be achieved upon the maturity of ADT’s notes due 2023, which have been partially redeemed with $600 million from the company’s term loan A facility. An additional $50 million from this facility together with $50 million in cash is earmarked to pay down the remaining balance.

ADT is a Boca Raton, Fla., security services company.

© 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.