ADT announced the pricing of its initial public offering of 105,000,000 shares of common stock at an initial public offering price of $14 per share, before underwriting discounts and commissions.
The company has also granted the underwriters a 30-day option to purchase up to an additional 15,750,000 shares of common stock at the initial public offering price, less underwriting discounts and commissions. ADT’s existing shareholders will not sell any shares in the offering.
The shares were expected to begin trading on The New York Stock Exchange (NYSE) under the symbol “ADT” on January 19, 2018, and the offering was expected to close on January 23, 2018, subject to customary closing conditions.
ADT expects to receive gross proceeds of approximately $1.47 billion from the offering, or approximately $1.69 billion if the underwriters exercise their over-allotment option in full.
The company intends to use the gross proceeds from the offering to partially redeem outstanding second lien notes, and deposit approximately $750 million of the net proceeds into a separate account, which will be used to redeem ADT Inc.’s preferred securities on a date to be determined, following the consummation of the initial public offering, and pay fees and expenses in connection with the offering.
Morgan Stanley, Goldman Sachs & Co. LLC, 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 Inc., Allen & Company LLC, Apollo Global Securities, Citizens Capital Markets, LionTree, SunTrust Robinson Humphrey and The Williams Capital Group, L.P. are acting as co-managers for the offering.