Prime Security (ADT) sets roadshow for $3.14 billion second priority notes offer backing buyout

By Paul A. Harris

Portland, Ore., April 14 – Prime Finance, Inc. started a roadshow on Thursday for $3.14 billion of second-priority senior secured notes due 2023 (B3/B-), according to an informed source.

Early guidance has the deal shaping up with a yield of 9%, a trader said.

An investor call is scheduled for 12:40 p.m. ET on Monday.

The roadshow wraps up on Thursday, April 21.

Deutsche Bank Securities Inc. is the left bookrunner for the Rule 144A for life offering. Barclays, Citigroup Global Markets Inc. and RBC Capital Markets are the joint bookrunners.

The notes come with three years of call protection.

Proceeds will be used in connection with the buyout of ADT Corp. by affiliates of Apollo Global Management, LLC and the merger of ADT with Protection 1.

The issuing entities are Prime Security Services Borrower, LLC and Prime Finance, Inc.

The company stated in a Thursday press release that up to $1.89 billion of the notes are to be sold in a marketed Rule 144A and Regulation S offering and at least $1.25 billion are to be sold in a fully committed private placement.

Protection 1 is a full-service business and home security company.

ADT is a Boca Raton, Fla.-based provider of monitored security, interactive home and business automation and related monitoring services.

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