ADT Inc. (NYSE: ADT) has announced the pricing of its first-priority senior secured notes due in 2033. The offering amounts to $1.0 billion in aggregate principal amount, with a 5.875% interest rate. This offering is exempt from the registration requirements of the Securities Act of 1933.
The company plans to use the proceeds from this offering, along with additional first lien senior secured term loans and available cash, to redeem all outstanding $1.3 billion aggregate principal amount of the 6.250% second-priority senior secured notes due in 2028. The offering is expected to close on October 15, 2025, subject to certain conditions.
It's important to note that the first-priority notes are being offered only to qualified institutional buyers under Rule 144A and in offshore transactions to non-U.S. investors pursuant to Regulation S. These notes will not be registered under the Securities Act or the securities laws of any other jurisdiction.
ADT Inc. emphasizes that this press release should not be considered an offer to sell or a solicitation of an offer to buy any security. Additionally, the press release clarifies that it does not constitute a notice to redeem any second-priority notes.
In this context, it's crucial for investors to be aware of the specific changes in the company's financial position, particularly the reduction in the interest rate from 6.250% to 5.875% and the shift from second-priority to first-priority notes. These changes can have a significant impact on the company's cost of debt and overall financial health. The market has reacted to these announcements by moving the company's shares -0.91% to a price of $8.71. For more information, read the company's full 8-K submission here.
