ADT sets term B at $3.11 billion, firms spread at Libor plus 325 bps

By Sara Rosenberg

New York, Sept. 13 – ADT Inc. (Prime Security Services Borrower LLC) finalized the size of its seven-year senior secured term loan B (Ba3/BB-) at $3.11 billion from talk in the range of $3.025 billion to $3.275 billion, according to a market source.

Also, pricing on the term loan was set at Libor plus 325 basis points, the high end of the Libor plus 300 bps to 325 bps talk, and the Libor floor was increased to 1% from 0%, the source said.

The term loan still has an original issue discount of 99 and 101 soft call protection for six months.

Barclays is the lead bank on the deal.

Proceeds will be used to help refinance an existing first-lien senior secured term loan due 2022 priced at Libor plus 275 bps with a 1% Libor floor and first-lien senior secured notes due 2020, and to pay associated fees, expenses and early call premiums.

Other funds for the transaction will come from $600 million of senior secured notes. The offering was initially talked with a size in the range of $500 million to $750 million and then talked at $500 million, before firming at $600 million.

ADT is a Boca Raton, Fla.-based provider of monitored security and interactive home and business automation solutions.

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