Published on 8/12/2016 in the Prospect News High Yield Daily.
New Issue: APX (Vivint) prices $100 million tap of 7 7/8% notes due 2022 at 104 to yield 6.78%
By Paul A. Harris
Portland, Ore., Aug. 12 – APX Group, Inc., the holding company of Vivint, Inc., priced a $100 million tack-on to its 7 7/8% senior secured notes due Dec. 1, 2022 (B1/B) at 104 to yield 6.78% on Friday, according to a syndicate source.
The reoffer price came in the middle of the 103.75 to 104.25 price talk.
Credit Suisse Securities (USA) LLC, BofA Merrill Lynch, Deutsche Bank Securities Inc., Citigroup Global Markets Inc., Goldman Sachs & Co., Macquarie Capital (USA) Inc., HSBC Securities (USA) Inc., Mizuho Securities USA Inc., Morgan Stanley & Co. LLC, Guggenheim Securities LLC, Citizens Capital Markets Inc. and Imperial Capital LLC were the joint bookrunners.
The notes become callable after Dec. 1, 2018 at 103.938. A special call provision allows the issuer to redeem 10% of the notes annually at 103 during the non-call period.
The Provo, Utah-based home security services provider plans to use the proceeds for general corporate purposes.
| Issuer: | APX Group, Inc. (Vivint, Inc.)
|
| Face amount: | $100 million
|
| Proceeds: | $104 million
|
| Maturity: | Dec. 1, 2022
|
| Security description: | Tack-on to 7 7/8% senior secured notes due Dec. 1, 2022
|
| Bookrunners: | Credit Suisse Securities (USA) LLC, BofA Merrill Lynch, Deutsche Bank Securities Inc., Citigroup Global Markets Inc., Goldman Sachs & Co., Macquarie Capital (USA) Inc., HSBC Securities (USA) Inc., Mizuho Securities USA Inc., Morgan Stanley & Co. LLC, Guggenheim Securities LLC, Citizens Capital Markets Inc., Imperial Capital LLC
|
| Co-manager: | Blackstone Advisory Partners LP
|
| Coupon: | 7 7/8%
|
| Price: | 104
|
| Yield to worst: | 6.78%
|
| Spread: | 577 bps
|
| First call: | Dec. 1, 2018 at 103.938
|
| Special call: | Issuer may redeem 10% of notes annually at 103 during the non-call period
|
| Equity clawback: | 35% at 107.875 until Dec. 1, 2018
|
| Trade date: | Aug. 12
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| Settlement date: | Aug. 17 with accrued interest
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| Ratings: | Moody's: B1
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| S&P: B
|
| Distribution: | Rule 144A and Regulation S with registration rights
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| Price talk: | 103.75 to 104.25
|
| Marketing: | Investor call
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| Original issue: | $500 million priced at par on May 19, 2016
|
| Fungibility: | Add-on notes will initially trade under a separate Cusip number and are expected to become fungible with the original notes upon completion of the exchange offer
|
| Total issue size: | $600 million
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