ADT Inc. (NYSE: ADT) has announced the proposed issuance and sale of $1.0 billion aggregate principal amount of first-priority senior secured notes due 2033 by its indirect wholly owned subsidiary, the ADT Security Corporation. The purpose of this offering, which is exempt from the registration requirements of the Securities Act of 1933, is to fund the redemption of all $1.3 billion outstanding 6.250% second-priority senior secured notes due 2028 issued by Prime Security Services Borrower, LLC and Prime Finance Inc., ADT's indirect wholly owned subsidiaries.
The notes are being offered to qualified institutional buyers in reliance on Rule 144A under the Securities Act, and in offshore transactions, only to non-U.S. investors pursuant to Regulation S. It's important to note that the notes will not be registered under the Securities Act or the securities laws of any other jurisdiction and may not be offered or sold in the United States absent an effective registration statement or an applicable exemption from registration requirements.
ADT Inc. is a provider of safe, smart, and sustainable solutions for people, homes, and small businesses, delivering innovative offerings and a premium customer experience through the largest network of smart home security professionals in the U.S.
In terms of financial implications, the proposed $1.0 billion notes offering, together with the incurrence of an additional $300 million principal amount of incremental first lien senior secured term loans and cash on hand, will facilitate the funding required for the redemption of the $1.3 billion outstanding 6.250% second-priority senior secured notes due 2028. The market has reacted to these announcements by moving the company's shares -0.23% to a price of $8.79. For more information, read the company's full 8-K submission here.
