Vivint Smart Home’s $800 Million Refinancing

Simpson Thacher advised Vivint Smart Home, Inc., while Cahill represented the initial purchasers in the offering.

Vivint Smart Home, Inc. has completed its refinancing transactions with a Rule 144/Regulation S offering by APX Group, Inc. (“APX Group”), an indirect, wholly owned subsidiary of Vivint Smart Home, of $800 million aggregate principal amount of 5.75% Senior Notes due 2029.

APX Group also completed the refinancing of its existing credit facilities with (i) a new $1.35 billion first lien senior secured term loan facility maturing in 2028 and (ii) a new $370 million first lien senior secured revolving credit facility maturing in 2026.

Vivint Smart Home used the net proceeds from the notes offering, together with the borrowings under the new credit facilities and cash on hand, to (i) redeem all of APX Group’s outstanding 7.875% Senior Secured Notes due 2022; (ii) redeem all of APX Group’s outstanding 7.625% Senior Notes due 2023; (iii) redeem all of APX Group’s outstanding 8.5% Senior Secured Notes due 2024; (iv) repay amounts outstanding, and to terminate all commitments, under APX Group’s existing credit facilities; and (v) pay the related redemption premiums and all fees and expenses related thereto.

Vivint Smart Home is one of the largest smart home solutions providers in North America. Vivint delivers an integrated smart home system with in-home consultation, professional installation and support delivered by its Smart Home Pros, as well as 24/7 customer care and monitoring. Dedicated to redefining the home experience with intelligent products and services, Vivint serves over 1.7 million subscribers and manages over 20 million devices.

The Simpson Thacher team included Jonathan Ozner (Picture), Ben Massey and Anna Jarman (Capital Markets); Eli Isak, Cem Islikci and Zhongji Wu (Credit); Jonathan Cantor and Edward Grais (Tax); Melanie Jolson (Intellectual Property); Greg Grogan, Jeanne Annarumma and Alisa Tschorke (Executive Compensation and Employee Benefits); Michael Isby (Environmental); and Amanda Weiss (Public Company Advisory Practice).

Cahill represented the initial purchasers with Josiah M. Slotnick, Joshua D. Goldberg, Brittany Holzwanger, and Michael A. Chaia.

Involved fees earner: Jeanne Annarumma – Simpson Thacher & Bartlett; Jonathan Cantor – Simpson Thacher & Bartlett; Edward Grais – Simpson Thacher & Bartlett; Gregory Grogan – Simpson Thacher & Bartlett; Eli Isak – Simpson Thacher & Bartlett; Michael Isby – Simpson Thacher & Bartlett; Cem Islikci – Simpson Thacher & Bartlett; Anna Jarman – Simpson Thacher & Bartlett; Melanie Jolson – Simpson Thacher & Bartlett; Ben Massey – Simpson Thacher & Bartlett; Jonathan Ozner – Simpson Thacher & Bartlett; Alisa Tschorke – Simpson Thacher & Bartlett; Amanda Weiss – Simpson Thacher & Bartlett; Zhongji Wu – Simpson Thacher & Bartlett;

Law Firms: Simpson Thacher & Bartlett;

Clients: Vivint Smart Home;

Author: Martina Bellini