By Paul A. Harris
Portland, Ore., March 21 – ADT Corp. priced $1.5 billion of first priority senior secured bullet notes (Ba3/BB-) in two evenly split tranches on Thursday, according a market source.
The deal included a $750 million tranche of five-year notes that priced at par to yield 5¼%. The yield printed in the middle of yield talk in the 5¼% area and tighter than initial talk in the 5½% area.
ADT also priced a $750 million tranche of seven-year notes at par to yield 5¾%. The yield printed in the middle of yield talk in the 5¾% area and tighter than initial talk in the 6% area.
The Boca Raton, Fla.-based security services company withdrew a $1.25 billion tranche of unsecured notes that had been talked at 7½% to 7¾%, downsizing the overall transaction to $1.5 billion from $2.75 billion.
The two tranches of secured notes, which priced Thursday afternoon, were heard to be playing to around $2 billion of orders across both tranches on Thursday morning, a trader said.
Deutsche Bank Securities Inc., Barclays, Citigroup Global Markets Inc. and RBC Capital Markets LLC were the joint bookrunners.
Proceeds will be used to repay debt.
| Issuer: | ADT Corp.
|
| Amount: | $1.5 billion
|
| Securities: | First priority senior secured notes
|
| Bookrunners: | Deutsche Bank Securities Inc., Barclays, Citigroup Global Markets Inc. and RBC Capital Markets LLC
|
| Trade date: | March 21
|
| Ratings: | Moody's: Ba3
|
| S&P: BB-
|
| Distribution: | Rule 144A for life
|
| Marketing: | Roadshow
|
|
|
| Five-year notes
|
| Amount: | $750 million
|
| Maturity: | Five years
|
| Coupon: | 5¼%
|
| Price: | Par
|
| Yield: | 5¼%
|
| Call protection: | Non-callable
|
| Price talk: | 5¼% area
|
|
|
| Seven-year notes
|
| Amount: | $750 million
|
| Maturity: | Seven years
|
| Coupon: | 5¾%
|
| Price: | Par
|
| Yield: | 5¾%
|
| Call protection: | Non-callable
|
| Price talk: | 5¾% area
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
