ADT’s Fire & Security plans new debt financing for buyout by GTCR

By Sara Rosenberg

New York, Aug. 8 – Fire & Security Holdings LLC has received a commitment for new debt financing to help fund its acquisition by GTCR from ADT Inc. for $1,612,500,000, according to an 8-K filed with the Securities and Exchange Commission on Tuesday.

Other funds for the transaction will come from equity.

Closing is expected in the fourth quarter, subject to customary conditions, including regulatory approvals.

ADT will use proceeds from the sale to reduce debt by $1.5 billion, to $7.8 billion from $9.3 billion, with cash interest savings expected to offset the impact of divesting the commercial business, and improving its leverage ratio to 3.3x from 3.7x at June 30.

Of the total $1.5 billion debt paydown amount, ADT expects to repay $200 million of notes due 2024 and the remainder to repay term loan borrowings, the company disclosed in a presentation.

Fire & Security is a commercial security, fire and life safety company.

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