ADT to price $1.3 billion eight-year second-lien notes on Thursday

By Paul A. Harris

Portland, Ore., Jan. 16 – ADT Inc. plans to price a $1.3 billion offering of second-lien senior secured notes due Jan. 15, 2028 (existing second lien ratings B3/B-) in a quick-to-market Thursday trade following a late-morning conference call with investors, according to a market source.

Barclays is the bookrunner for the Rule 144A and Regulation S for life offering.

The eight-year notes become callable after three years at par plus 50% of the coupon. They feature a three-year 40% equity clawback and a 101% poison put.

The issuing entities will be Prime Security Services Borrower, LLC and Prime Finance Inc., wholly owned subsidiaries of ADT.

The Boca Raton, Fla.-based provider of home and business security services plans to use the proceeds, along with cash on its balance sheet and/or drawings on its revolving credit facility, to refinance its existing second-lien notes due 2023.

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