Published on 1/18/2017 in the Prospect News High Yield Daily.
New Issue: Vivint prices $300 million tap of 7 7/8% notes due 2022 at 108.25
By Paul A. Harris
Portland, Ore., Jan. 18 – APX Group Holdings, Inc., the holding company of Vivint, priced a $300 million add-on to its 7 7/8% senior secured notes due Dec. 1, 2022 (B1/B) at 108.25 in a Wednesday drive-by, according to a syndicate source.
The price came at the rich end of price talk in the 108 area and rich to initial guidance of 107.5 to 108, sources said.
BofA Merrill Lynch is the lead left bookrunner. Credit Suisse Securities (USA) LLC, Citigroup Global Markets Inc., Deutsche Bank Securities Inc., Goldman Sachs & Co., Macquarie Capital, HSBC Bank, Mizuho Securities, Morgan Stanley & Co. LLC, Citizens Bank, Guggenheim and Imperial Capital were joint bookrunners.
The Provo, Utah-based home security services provider plans to use the proceeds to redeem up to $300 million of its 6 3/8% senior secured notes due 2019, with any remaining proceeds to be used for general corporate purposes.
| Issuer: | APX Group, Inc.
|
| Face amount: | $300 million
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| Proceeds: | $324.75 million
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| Maturity: | Dec. 1, 2022
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| Security description: | Add-on to 7 7/8% senior secured notes due Dec. 1, 2022
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| Left bookrunner: | BofA Merrill Lynch
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| Joint bookrunners: | Credit Suisse Securities (USA) LLC, Citigroup Global Markets Inc., Deutsche Bank Securities Inc., Goldman Sachs & Co., Macquarie Capital, HSBC Bank, Mizuho Securities, Morgan Stanley & Co. LLC, Citizens Bank, Guggenheim, Imperial Capital
|
| Co-manager: | Blackstone
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| Coupon: | 7 7/8%
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| Price: | 108.25
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| First call: | Dec. 1, 2018 at 103.938
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| Trade date: | Jan. 18
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| Settlement date: | Feb. 1 with accrued interest
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| Ratings: | Moody's: B1
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| S&P: B
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| Distribution: | Rule 144A and Regulation S with registration rights
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| Price talk: | 108 area
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| Marketing: | Quick to market
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| Original issue: | $500 million priced at par on May 19, 2016
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| Previous tap: | $100 million tack-on priced at 104 to yield 6.78% on Aug. 12, 2016
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| Total issue size: | $900 million
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