ADT - ADT launches $200M in debt paydown

2023-03-17 10:06:43 ET

• ADT ( NYSE: ADT ) announced a plan to pay down $200M in debt using cash on hand.
• Of the total, $150M will be achieved through a partial redemption of the $750M ADT First-Priority Senior Secured Notes due 2024 and $50M will be achieved on the maturity of company's ADT Notes due 2023.
• Earlier, ADT notes due 2023 have been partially redeemed with $600M from its Term Loan A Facility and it expects to use an additional $50M from this facility together with $50M in cash to pay down the remaining balance.
• "This substantial paydown accelerates ADT toward our goal of using our strong cash generation to reduce net debt by $1B by year-end 2025, versus year-end 2021," ADT EVP & CFO commented.
• ADT’s indirect wholly owned subsidiaries delivered a notice of partial redemption to holders of the issuers' outstanding 5.250% first-priority senior secured notes due 2024 which provides for the partial redemption by the issuers of $150M principal amount of 2024 notes on May 2, 2023 expected to be ~$1,002/$1K of outstanding principal amount of the 2024 notes plus the accrued and unpaid interest on the 2024 notes so redeemed.
• Post the partial redemption, outstanding principal amount of the 2024 Notes will be $600M.

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