Transaction accelerates progress toward goal of $1 billion net debt reduction by year-end 2025
BOCA RATON, Fla., March 17, 2023 (GLOBE NEWSWIRE) — ADT Inc. (NYSE: ADT), the most trusted brand in smart home and small business security, today announced a plan to pay down $200 million in debt using cash on hand. Of the total, $150 million will be achieved through a partial redemption of the $750 million ADT First-Priority Senior Secured Notes due 2024 and $50 million will be achieved upon the maturity of our ADT Notes due 2023. As previously announced, the ADT Notes due 2023 have been partially redeemed with $600 million from our Term Loan A Facility and we expect to use an additional $50 million from this facility together with $50 million 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 $1 billion by year-end 2025, versus year-end 2021,” said Ken Porpora, ADT Executive Vice President and Chief Financial Officer.
Notice of Partial Redemption
ADT’s indirect wholly owned subsidiaries, Prime Security Services Borrower, LLC and Prime Finance Inc. (together, the “Issuers”), delivered a Notice of Partial Redemption to holders of the Issuers’ outstanding 5.250% First-Priority Senior Secured Notes due 2024 (the “2024 Notes”), which provides for the partial redemption by the Issuers of $150 million aggregate principal amount of 2024 Notes on May 2, 2023 (the “Redemption Date”), at a redemption price (the “Redemption Price”) expected to be approximately $1,002 per $1,000 of outstanding principal amount of the 2024 Notes plus the accrued and unpaid interest on the 2024 Notes so redeemed. The Issuers will calculate the final Redemption Price prior to the Redemption Date in accordance with the provisions of the indenture governing the 2024 Notes. Following the partial redemption, the aggregate outstanding principal amount of the 2024 Notes will be $600 million.
Nothing in this press release should be construed as a notice to redeem any 2024 Notes. Any such notice will be made separately pursuant to and in accordance with the terms of the indenture governing the 2024 Notes.
About ADT Inc.
ADT provides safe, smart and sustainable solutions for people, homes and businesses. Through innovative offerings, unrivaled safety, and a premium customer experience, all delivered by the largest network of smart home security and rooftop solar professionals in the U.S., we empower people to protect and connect to what matters most. For more information, visit www.adt.com.
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