ADT tightens issue price on $800 million incremental term loan to par

By Sara Rosenberg

New York, Feb. 7 – ADT Corp. revised the issue price on its fungible $800 million covenant-light incremental term loan B (Ba3) due May 2, 2022 to par from 99.5, according to a market source.

Also, at launch, the 101 soft call protection on the company’s existing term loan B and the new incremental loan had been outlined as refreshed for six months, but the call protection has been changed so that the original June 28 expiration date for the call protection on the existing loan will stay in place and will apply to the incremental as well, the source said.

Pricing on the incremental term loan is still Libor plus 325 basis points with a 1% Libor floor, in line with existing term loan pricing.

Commitments were scheduled to be due at 5 p.m. ET on Tuesday, the source added.

Barclays, Deutsche Bank Securities Inc., RBC Capital Markets and Citigroup Global Markets Inc. are the lead banks on the deal.

Proceeds will be used to fund distributions to the company’s equity holders and pay related fees and expenses.

Apollo is the sponsor.

ADT is a security services company.

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