By Paul A. Harris
Portland, Ore., July 15 – ADT Inc. priced a $1 billion issue of eight-year first-priority senior secured notes (Ba3/BB-) at par to yield 4 1/8% in a Thursday drive-by, according to market sources.
The yield printed in the middle of the 4% to 4¼% yield talk, and in line with initial guidance in the low 4% area.
Deutsche Bank Securities Inc. was the left bookrunner.
The issuing entity, ADT Security Corp. is a wholly-owned indirect subsidiary of ADT Inc.
The Boca Raton-based provider of home and business security equipment and services plans to use the proceeds to redeem the ADT Security Corp. 3½% senior unsecured notes due 2022.
Issuer: | ADT Security Corp.
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Amount: | $1 billion
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Maturity: | Aug. 1, 2029
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Securities: | First priority senior secured notes
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Left bookrunner: | Deutsche Bank Securities Inc.
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Joint bookrunners: | Barclays, Mizuho Securities USA Inc., RBC Capital Markets Corp., Citigroup Global Markets Inc., Morgan Stanley & Co. LLC, MUFG, BNP Paribas Securities Corp.
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Coupon: | 4 1/8%
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Price: | Par
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Yield: | 4 1/8%
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Spread: | 298 basis points
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Call protection: | Bullet
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Trade date: | July 15
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Settlement date: | July 29
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Ratings: | Moody's: Ba3
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| S&P: BB-
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Distribution: | Rule 144A and Regulation S
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Price talk: | 4% to 4¼%
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Marketing: | Drive-by
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