ADT launches $425 million incremental term loan B at 99.5-99.75 OID

By Sara Rosenberg

New York, Nov. 13 – ADT Inc. (Prime Security Services Borrower LLC) held a lender call at 10 a.m. ET on Tuesday to launch a fungible $425 million incremental term loan B (Ba3/BB-) due May 2, 2022 that is talked with an original issue discount of 99.5 to 99.75, according to a market source.

Pricing on the incremental loan is Libor plus 275 basis points with a 1% Libor floor, the source said.

Barclays, Citigroup Global Markets Inc., Citizens Bank, Deutsche Bank Securities Inc. and RBC Capital Markets are the bookrunners on the deal.

Commitments are due at noon ET on Monday, the source added.

Proceeds will be used to help fund the acquisition of Red Hawk Fire & Security from Comvest Partners for $317.5 million in cash, and for general corporate purposes, which may include the repurchase, repayment or redemption of existing debt.

Closing on the acquisition is expected this quarter, subject to regulatory approvals and other customary conditions.

ADT is a Boca Raton, Fla.-based security services company. Red Hawk is a Boca Raton, Fla.-based commercial fire, life safety and security services solutions provider.

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