Published on 2/11/2020 in the Prospect News High Yield Daily.
New Issue: APX prices upsized $600 million seven-notes notes at par to yield 6¾%
By Paul A. Harris
Portland, Ore., Feb. 11 – APX Group, Inc., the parent of Vivint Inc., priced an upsized $600 million issue of seven-year senior secured notes (B2/B-) at par to yield 6¾% on Tuesday, according to a market source.
The issue size increased from $500 million.
The yield printed on top of final yield talk and on the tight end of earlier talk of 6¾% to 7%.
Credit Suisse Securities LLC was the left lead bookrunner. Joint bookrunners were BofA Securities Inc., Citigroup Global Markets Inc., Goldman Sachs & Co. LLC, Citizens Capital Markets Inc., Deutsche Bank Securities Inc., HSBC Securities (USA) Inc., RBC Capital Markets Corp., Mizuho Securities USA Inc. and J.P. Morgan Securities LLC.
The Provo, Utah-based smart home services provider plans to use the proceeds, including the incremental proceeds resulting from the $100 million upsizing of the deal, to redeem its 8¾% senior notes due 2020 and its 8 7/8% senior secured notes due 2022, as well as to refinance its term loan and revolver and to redeem a portion of its 7 7/8% senior secured notes due 2022.
| Issuer: | APX Group, Inc. (Vivint)
|
| Amount: | $600 million, increased from $500 million
|
| Maturity: | Feb. 15, 2027
|
| Securities: | Senior secured notes
|
| Left lead bookrunner: | Credit Suisse Securities LLC
|
| Joint bookrunners: | BofA Securities Inc., Citigroup Global Markets Inc., Goldman Sachs & Co. LLC, Citizens Capital Markets Inc., Deutsche Bank Securities Inc., HSBC Securities (USA) Inc., RBC Capital Markets Corp., Mizuho Securities USA Inc. and J.P. Morgan Securities LLC
|
| Co-manager: | Blackstone
|
| Coupon: | 6¾%
|
| Price: | Par
|
| Yield: | 6¾%
|
| Spread: | 525 bps
|
| First call: | Feb. 15, 2023 at 103.375
|
| Special call: | 10% of notes annually at 103 during non-call period
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| Trade date: | Feb. 11
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| Settlement date: | Feb. 14
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| Ratings: | Moody's: B2
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| S&P: B-
|
| Distribution: | Rule 144A and Regulation S for life
|
| Price talk: | 6¾%, revised from 6¾% to 7%
|
| Marketing: | Roadshow
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