ADT to issue $1 billion in secured notes to refinance debt

NEW YORK - ADT Inc. (NYSE:ADT), the $7.25 billion market cap security solutions provider currently trading at $8.79, announced Tuesday that its subsidiary, The ADT Security Corporation, plans to issue $1 billion in first-priority senior secured notes due 2033 in a private offering. According to InvestingPro analysis, ADT maintains a GREAT financial health score and appears undervalued at current levels.

The home security provider intends to use the proceeds, along with an additional $300 million in incremental first lien senior secured term loans and cash on hand, to redeem all $1.3 billion of its outstanding 6.250% Second-Priority Senior Secured Notes due 2028. The refinancing comes as ADT manages its $7.92 billion total debt position while delivering strong YTD returns of nearly 30%.

The notes will be offered only to qualified institutional buyers under Rule 144A of the Securities Act and to non-U.S. investors through Regulation S. The securities will not be registered under the Securities Act and cannot be sold in the United States without registration or an applicable exemption.

This announcement does not constitute an offer to sell securities or a notice to redeem any existing notes, according to the company’s press release.

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

The transaction represents a refinancing of existing debt obligations rather than an increase in the company’s overall debt load.

In other recent news, ADT Inc. reported a strong second-quarter performance with a 7% increase in revenue, 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 for a new $300 million term loan, which will be used alongside $1.0 billion in additional debt and cash on hand to redeem $1.3 billion of its outstanding notes due in 2028. This financial maneuver aims to optimize the company’s debt structure.

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 transactions are expected to close on July 28, 2025, subject to customary conditions. These recent developments reflect ADT’s ongoing efforts to strengthen its financial standing and enhance shareholder value.

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