ADT Pays Down $200M Debt, Aims To Reduce Net Debt By $1B By 2025

  • ADT Inc ADT plans to pay down $200 million in debt using cash on hand.
  • Of the total, $150 million will be achieved through a partial redemption of the $750 million ADT first-priority senior secured notes due 2024.
  • About $50 million will be achieved upon the maturity of ADT notes due 2023.
  • As announced earlier, the ADT Notes due 2023 have been partially redeemed with $600 million from Term Loan A Facility. ADT expects to use an additional $50 million from this facility, together with $50 million in cash, to pay down the remaining balance.
  • "This substantial paydown accelerates ADT toward our goal of using our strong cash generation to reduce net debt by $1 billion by year-end 2025, versus year-end 2021," said executive vice president and CFO Ken Porpora.
  • As of Dec. 31, 2022, the company had a total debt of $9.8 billion.
  • ADT held cash and equivalents of $374 million as of December end.
  • In its Q4 report, ADT mentioned it has no other significant debt maturities remaining in 2023.
  • Also ReadADT Issues Cautious FY23 Outlook After Q4 Earnings Miss, EBITDA Margin Decline
  • Price Action: ADT shares are trading lower by 0.93% at $6.93 on the last check Friday.
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