ADT trims term B to $1.38 billion, sets spread at SOFR plus 250 bps

By Sara Rosenberg

New York, Oct. 11 – ADT Inc. (Prime Security Services Borrower LLC) downsized its seven-year term loan B to $1.375 billion from $1.4 billion to better align to the current amount outstanding under an existing term loan B, according to a market source.

In addition, pricing on the term loan firmed at SOFR plus 250 basis points, the low end of the SOFR plus 250 bps to 275 bps talk, the source said.

The term loan still has a 0% floor, an original issue discount of 99, 101 soft call protection for six months, amortization of 1% per annum and no CSA.

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.

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.

Proceeds will be used with cash from the balance sheet and proceeds from the recently 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.

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

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