ADT to launch $1.4 billion term loan B on Tuesday afternoon

By Sara Rosenberg

New York, Oct. 2 – ADT Inc. (Prime Security Services Borrower LLC) will hold a lender call at 2 p.m. ET on Tuesday to launch a $1.4 billion seven-year term loan B, according to a market source.

Barclays, Deutsche Bank Securities Inc., Mizuho, RBC Capital Markets, Citigroup Global Markets Inc., Morgan Stanley Senior Funding Inc., MUFG, BNP Paribas Securities Corp. and Citizens Bank are the joint bookrunners on the deal. AGS, Fifth Third, ING and UBS Investment Bank are the co-managers. Barclays is the administrative agent.

The term loan has 101 soft call protection for six months, the source said.

Amortization on the term loan is 1% per annum.

Security is a perfected first priority interest in substantially all assets of the borrower and guarantors.

The term loan ranks pari passu with all existing and future senior indebtedness and senior to all existing and future subordinated indebtedness.

Commitments are due at 5 p.m. ET on Oct. 10.

Proceeds will be used with cash from the balance sheet and proceeds from the completed sale of ADT’s commercial security, fire and life safety business to GTCR for $1.6 billion to refinance an existing term loan B due 2026.

First-lien net leverage will be about 2.5x and total net leverage will be about 2.9x.

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

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