ADT prices $1 billion in secured notes to refinance debt

BOCA RATON, Fla. - ADT Inc. (NYSE:ADT), the $7.2 billion market cap security solutions provider, announced Tuesday it has priced an offering of $1 billion in first-priority senior secured notes with a 5.875% interest rate due 2033 through its indirect wholly owned subsidiary, The ADT Security Corporation. According to InvestingPro analysis, ADT maintains a GREAT financial health score, suggesting strong operational fundamentals.

The offering, which is exempt from Securities Act registration requirements, is expected to close on October 15, 2025, subject to certain conditions.

The home security provider plans to use proceeds from the offering, along with incremental first lien senior secured term loans and cash on hand, to redeem all $1.3 billion of outstanding 6.250% Second-Priority Senior Secured Notes due 2028 issued by Prime Security Services Borrower, LLC and Prime Finance Inc., both wholly owned indirect subsidiaries of ADT. This refinancing move comes as the company manages its $7.9 billion total debt position, while maintaining healthy cash flows with a free cash flow yield of 19%.

The notes are being offered only to qualified institutional buyers under Rule 144A and to non-U.S. investors through Regulation S. They will not be registered under the Securities Act or other securities laws, limiting their resale without proper registration or exemption.

This refinancing move comes as ADT continues to focus on its core residential security business following its exit from the residential solar market and divestiture of its commercial business.

ADT provides security solutions for homes and small businesses through its network of smart home security professionals across the United States.

The information in this article is based on a company press release statement.

In other recent news, ADT Inc. reported a 7% increase in revenue for the second quarter of 2025, totaling $1.3 billion. The company also raised its adjusted earnings per share (EPS) guidance for the year, signaling confidence in its strategic initiatives. Additionally, ADT announced plans to issue $1 billion in first-priority senior secured notes due 2033. The proceeds from this issuance, along with a $300 million term loan and cash on hand, will be used to redeem $1.3 billion of outstanding 6.250% second-priority senior secured notes due 2028. In another development, entities managed by affiliates of Apollo Global Management, Inc. plan to sell 71 million shares of ADT’s common stock in a secondary public offering. The underwriters have a 30-day option to purchase an additional 10.65 million shares from the selling stockholders. These recent developments highlight ADT’s ongoing efforts to manage its debt and shareholder structure.

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