PROVO, Utah – Vivint Smart Home, Inc. announced that it has successfully completed its latest round of refinancing, including the securing of a new credit facility and a revolving line of credit.
According to the details of the transaction, APX Group, Inc., an indirect wholly-owned subsidiary of the company, has completed its offering for a total principal amount of $ 800 million of 5.75 percent senior notes due 2029 in a private placement.
Vivint also announced that at the same time as the bond offering, the APX Group will add its existing credit facilities to a new senior secured term credit facility of 1.35 million counterparty and Bank of America, NA as lender, administrator and collateral agent.
The refinancing transactions added approximately 3.5 years to the weighted average maturities of Vivint’s outstanding debt and are expected to reduce annual interest expense by approximately $ 50 million.
Vivint intends to use the net proceeds from the offering of the Notes, along with the borrowings under the New Senior Secured Credit Facilities and cash, to:
- Redeem all $ 677.0 million of its outstanding 7.875% Senior Secured Notes due 2022;
- Redeem all $ 400.0 million of its outstanding 7.625% Senior Notes due 2023;
- Redeem all $ 225.0 million of its outstanding 8.500% Senior Secured Notes due 2024;
- repay the outstanding amounts and terminate all commitments under its existing term loans and revolving credit facilities; and
- Payment of applicable redemption premiums and all related fees and expenses.
Vivint Smart Home is one of the largest smart home solution providers in North America, serving more than 1.7 million subscribers and managing more than 20 million devices.
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