S&P rates ADT term loan BB

S&P said it assigned its BB issue-level rating and 2 recovery rating to ADT Inc.'s new $1.4 billion term loan due 2030. The recovery rating indicates an expectation for substantial (70%-90%; rounded estimate 85%) recovery in a simulated default.

Proceeds from the new debt will be used to refinance an existing term loan due 2026.

“Our BB- issuer credit rating remains unchanged and reflects our view that the debt reduction and an extended debt maturity profile enhance the company's financial flexibility as it executes growth initiatives,” S&P said in a news release.

“We expect the company's operating performance will continue to improve as growth in the consumer and small business segment outweighs softness in the solar business.”

© 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.