The ADT CorporationNYSE
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  • Tue, Feb. 16, 6:56 AM
    • Apollo Funds acquires monitored security firm (NYSE:ADT) for $42 per share in cash (~$15B). The company will be combined with full-service business and home security firm Protection 1.
    • Protection 1 chief Tim Whall will lead the combined company, which will generate over $4.2B in annual revenues.
    • The deal will be financed via $1.555B in new first lien term loans, $3.140B in new second lien loans, the issuance of $750M of preferred stock in Koch Equity Development, LLC (the investment and acquisition arm of Koch Industries) and an equity distribution of ~$4.5B from funds managed by Apollo and co-investors
    • Protection 1 will enter into a new $255M first lien revolving facility concurrent with the closing of the transaction, increasing its combined senior secured revolving facility to $350M. It also intends to redeem all of ADT's outstanding senior unsecured 2.250% notes due July 2017 and senior unsecured 4.125% notes due April 2019 as well as all outstanding borrowings under its revolving credit facility. In addition, it will guarantee ADT's remaining $3.750B of total senior unsecured notes thereby maintaining their current credit ratings.
    • ADT shares are up 51% premarket on increased volume.
    | Tue, Feb. 16, 6:56 AM | 1 Comment
  • Mon, Feb. 15, 7:53 PM
    • Apollo Global Management (NYSE:APO) is nearing a deal to acquire security firm ADT, The Wall Street Journal is reporting.
    • An announcement could come tomorrow. ADT's market cap is over $4.5B, after a stock decline of nearly 30% over the past 12 months,  though with debt the deal could rise over $10B. At its most recent quarter, ADT reported $5.4B in total debt, which would make this deal one of the biggest leveraged buyouts in recent years.
    • Last spring, Apollo moved to buy ASG Security and combine it with Protection One.
    | Mon, Feb. 15, 7:53 PM | 2 Comments