...October 3, 2023 NEW YORK (S&P Global Ratings) Oct. 3, 2023--S&P Global Ratings today assigned its '##' issue-level rating and '2' recovery rating to Florida-based ADT Inc.'s new $1.4 billion term loan due 2030. The recovery rating indicates our expectation for substantial (70%-90%; rounded estimate 85%) recovery in our simulated default. Proceeds from the new debt will be used to refinance the existing term loan due 2026. ADT recently completed the sale of its commercial business. We updated our recovery analysis to consider the sale and use of proceeds to reduce the existing term loan. The debt reduction outweighs lower emergence EBITDA due to the asset sale, and resulted in higher recovery prospects for lenders, to 85% from 75%. Our '##-' issuer credit rating remains unchanged and reflects our view that the debt reduction and an extended debt maturity profile enhance the company's financial flexibility as it executes growth initiatives. We expect the company's operating performance will...
