ADT to repay $300 million of first-lien term loans in December

By Cady Vishniac

Detroit, Dec. 9 – ADT Inc. will repay $300 million of outstanding first-lien term loans under the existing credit agreement with Prime Security Services Borrower, LLC in December, according to a press release.

ADT had previously planned to use the funds for tender offers for up to $300 million of its outstanding 6¼% second-priority senior secured notes due 2028 (Cusip: 74166MAE6) and its 4 7/8% first-priority senior secured notes due 2032 (Cusip: 74166NAA2) issued by the company and its wholly owned subsidiaries, Prime Security Services Borrower, Prime Finance Inc. and the ADT Security Corp.

The tender offers were terminated after Moody’s Investors Service announced that using its loss-given-default methodology, it had determined that the tender offer on the 2028 notes was reason to consider downgrading ADT’s first-lien debt to B1 from Ba3.

In September, ADT received $450 million of proceeds from an equity investment in the company by Google and has stated its intention to use these proceeds to reduce debt and fund growth investments in 2020 and beyond.

ADT is a Boca Raton, Fla.-based provider of home and business security services.

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