By Cristal Cody
Tupelo, Miss., Sept. 13 – ADT Inc. priced an upsized $600 million add-on to its 5¾% first priority senior secured bullet notes due April 15, 2026 (Ba3/BB-) on top of talk at 102 and a yield to maturity of 5.383% on Friday, according to a market source.
Price guidance had firmed to 102 from initial talk in the 102 to 102.5 area.
The Rule 144A for life offering was upsized from $500 million.
The notes were issued through subsidiaries Prime Security Services Borrower LLC and Prime Finance Inc.
Deutsche Bank Securities Inc. was the left bookrunner. Joint bookrunners were Barclays, Citigroup Global Markets Inc., Mizuho Securities USA Inc., RBC Capital Markets LLC and Goldman Sachs & Co. LLC.
The non-callable notes were first priced in a $750 million offering on March 21 at par. The total outstanding is now $1.35 billion.
ADT also plans 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.
| Issuers: | Prime Security Services Borrower LLC and Prime Finance Inc.
|
| Amount: | $600 million
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| Description: | First priority senior secured notes
|
| Maturity: | April 15, 2026
|
| Bookrunners: | Deutsche Bank Securities Inc. (left), Barclays, Citigroup Global Markets Inc., Mizuho Securities USA Inc., RBC Capital Markets LLC and Goldman Sachs & Co. LLC
|
| Co-managers: | Apollo Global Securities LLC, Citizens Capital Markets Inc., Credit Suisse Securities (USA) LLC and ING Financial Markets LLC
|
| Coupon: | 5¾%
|
| Price: | 102
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| Yield to maturity: | 5.383%
|
| Spread: | Treasuries plus 358 bps
|
| Change-of-control put: | 101%
|
| Trade date: | Sept. 13
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| Settlement date: | Sept. 23
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| Ratings: | Moody’s: Ba3
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| S&P: BB-
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| Distribution: | Rule 144A for life
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| Price talk: | 102; initial talk at 102 to 102.5 area
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| Total outstanding: | $1.35 billion, including $750 million of notes priced March 21 at par to yield 5¾%
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