ADT markets $500 million add-on to 5¾% senior secured notes due 2026

By Cristal Cody

Tupelo, Miss., Sept. 12 – ADT Inc. plans to price a $500 million add-on to its 5¾% first priority senior secured bullet notes due April 15, 2026 (Ba3/BB-) in a Rule 144A for life and Regulation S deal on Thursday, according to an informed source and a news release.

Issuers are company subsidiaries Prime Security Services Borrower LLC and Prime Finance Inc.

Investor calls were expected over the morning before the issue prices.

Deutsche Bank Securities Inc., Barclays, Citigroup Global Markets Inc., Mizuho Securities USA Inc., RBC Capital Markets LLC and Goldman Sachs & Co. LLC are the joint bookrunners.

Co-managers are Apollo Global Securities LLC, Citizens Capital Markets Inc., Credit Suisse Securities (USA) LLC and ING Financial Markets LLC.

The non-callable notes were first priced in a $750 million offering at par on March 21.

The issue has a change-of-control put at 101%.

ADT also announced a tender offer for its 5¼% first-lien senior secured senior notes due 2020, subject to completion of the note offering and a credit agreement amendment.

Proceeds, along with proceeds from the credit agreement amendment and borrowings under the company’s revolving credit facility, will be used to refinance $3,414,000,000 of first-lien senior secured term loans due 2022 that are outstanding under a first-lien credit agreement and to repurchase or redeem $300 million of the outstanding 2020 notes in full.

ADT is a Boca Raton, Fla.-based provider of monitored security and interactive home and business automation solutions.

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