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ADT

ADT Inc. Announces $1 Billion Notes Offering

ADT Inc. (NYSE: ADT) has announced a significant financial move with its subsidiary, the ADT Security Corporation, proposing to issue and sell $1.0 billion aggregate principal amount of first-priority senior secured notes due 2033. This offering is exempt from the registration requirements of the Securities Act of 1933 and is targeted towards qualified institutional buyers and non-U.S. investors.

The purpose of this offering 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., which are ADT's indirect wholly owned subsidiaries.

This move comes as part of ADT's strategic financial management, intending to use the proceeds from the offering, together with the proceeds from the incurrence of an additional $300 million principal amount of incremental first lien senior secured term loans and cash on hand.

It's worth noting that the proposed notes offering and the additional term loans are set to facilitate a substantial shift in ADT's financial structure, enabling the company to address its outstanding debt obligations and potentially improve its financial flexibility.

This financial maneuver is a significant development for ADT Inc., signaling a proactive approach to optimizing its capital structure and addressing its debt maturity profile. The success of this offering and the subsequent redemption of the existing notes could notably alter the company's financial metrics and position in the market. Today the company's shares have moved -1.24% to a price of $8.6812. For more information, read the company's full 8-K submission here.

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