ADT Sets Terms for $2B IPO With Shares Ranging $17-$19 Apiece
ADT will offer a standard 15% of the company’s total cap in the IPO, with the balance still owned by Apollo Global Management.
Owned by Apollo Global Management, the nation’s largest residential security provider plans to raise $2 billion by offering 111.1 million shares at a price range of $17 to $19. At the midpoint of the proposed range, ADT would command a fully diluted market value of $13.7 billion.
The company, based here, will list on the New York Stock Exchange (NYSE) under the ticker symbol ADT.
According to ADT’s announcement, the company granted to the underwriters a 30-day option to purchase up to an additional 16.7 million shares of common stock at the IPO price, less underwriting discounts and commissions. ADT’s existing shareholders will not sell any shares in the offering.
ADT says it plans to use the gross proceeds from the offering to partially redeem outstanding second lien notes, pay fees and expenses in connection with the offering, and deposit approximately $750 million of the net proceeds into a separate account. That amount will be used to redeem ADT’s preferred securities on a date to be determined following the IPO.
Morgan Stanley, Goldman Sachs & Co., Barclays, Deutsche Bank Securities and RBC Capital Markets are acting as joint book-running managers for the offering. Citigroup, BofA Merrill Lynch and Credit Suisse are serving as bookrunners. Imperial Capital, Academy Securities, Allen & Company, Apollo Global Securities, Citizens Capital Markets, LionTree, SunTrust Robinson Humphrey and The Williams Capital Group are acting as co-managers for the offering.
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