ADT announces plans for $300 million term loan and redemption of $1.3 billion notes

Published 25/09/2025, 21:30
ADT announces plans for $300 million term loan and redemption of $1.3 billion notes

ADT Inc. (NYSE:ADT), currently trading at $8.60 and rated as undervalued according to InvestingPro analysis, announced Thursday that its subsidiaries intend to begin marketing a new $300 million incremental first lien senior secured term B-2 loan facility, expected to mature in 2032. The company also issued a conditional notice of redemption for all $1.3 billion of its outstanding 6.250% second-priority senior secured notes due 2028.

According to a statement based on a Securities and Exchange Commission filing, ADT plans to use the proceeds from the new term loan, along with up to $1.0 billion in additional first lien senior secured debt and cash on hand, to fund the full redemption of the $1.3 billion notes. The company currently maintains a total debt of $7.92 billion with a debt-to-equity ratio of 2.16, metrics that are thoroughly analyzed in the comprehensive InvestingPro Research Report.

The closing of the new term loan facility is subject to successful marketing and other customary conditions. The company noted that there is no assurance the subsidiaries will close the new facility or incur additional debt as described.

The conditional notice of redemption sets October 25, 2025, as the redemption date for the outstanding notes. The redemption price will be 100% of the principal amount plus accrued and unpaid interest up to, but excluding, the redemption date. Despite its substantial debt load, ADT maintains a "GOOD" Financial Health Score according to InvestingPro, with strong EBITDA of $2.67 billion in the last twelve months. The redemption is conditioned on the completion of one or more new long-term debt financings by the subsidiaries or ADT Security Corporation on or before the redemption date.

ADT stated that this disclosure does not constitute an offer to sell or the solicitation of an offer to buy any security.

The information in this article is based on a press release statement included in the company’s filing with the Securities and Exchange Commission.

In other recent news, ADT Inc. reported a strong performance for the second quarter of 2025, with revenue increasing by 7% to reach $1.3 billion. The company has also raised its adjusted earnings per share (EPS) guidance for the year, signaling confidence in its strategic initiatives. Additionally, entities managed by affiliates of Apollo Global Management, Inc. have announced a secondary public offering of 71 million shares of ADT common stock. The offering is expected to close on July 28, 2025, with underwriters having a 30-day option to purchase up to an additional 10.65 million shares. These developments highlight significant financial activities and strategic moves within the company.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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