Vivint completes refinancing, secures new credit facility

PROVO, Utah—Vivint Smart Home, Inc. announced that it successfully completed its latest round of refinancing efforts, including securing a new credit facility and revolving line of credit.

According to the details of the deal, APX Group, Inc., an indirect, wholly owned subsidiary of the company, completed its offering of $800 million aggregate principal amount of 5.75 percent senior notes due 2029 in a private placement.

Vivint also announced that, concurrently with the Notes offering, APX Group refinanced its existing credit facilities with a new $1.35 million first lien senior secured term loan facility maturing in 2028, and a new $370 million senior secured revolving credit facility maturing in 2026 with “lenders party thereto” and Bank of America, N.A. as a lender, administrative agent and collateral agent.

The refinancing transactions extended the weighted average maturities on Vivint’s outstanding indebtedness by approximately 3.5 years and are expected to reduce annual interest expense by approximately $50 million.

Vivint intends to use the net proceeds from the Notes offering, together with the borrowings under the New Senior Secured Credit Facilities and cash on hand, 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 amounts outstanding, and to terminate all commitments, under its existing term loan and revolving credit facilities; and
• 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, serving more than 1.7 million subscribers and managing more than 20 million devices.