APX Group Inc. $250 Million Senior Secured Notes Rated 'B-' (Recovery: '3')

NEW YORK (S&P Global Ratings) April 23, 2019--S&P Global Ratings today assigned its 'B-' issue-level rating and '3' recovery rating to APX Group Inc.'s (aka Vivint) $250 million proposed senior secured notes due in 2024.
The '3' recovery rating indicates our expectation for meaningful recovery (50%-70%; rounded estimate: 55%) in the event of a payment default. Vivint intends to use the proceeds to refinance a portion of its 8.75% senior unsecured notes due in 2020.
Our 'B-' issuer credit rating on Vivint reflects the company's narrow focus, limited geographic diversification, and elevated leverage while competing in the highly fragmented U.S. residential alarm monitoring industry. Our expectations include, among other things, company's substantial cash used as part of its customer acquisition strategy, leveraging its vast product variety in the growing smart home monitoring segment. Partially offsetting these risks is the recurring revenue model coupled with strong subscriber growth trends.
Frequently Asked Questions Q:What is the credit rating id for this company?
Q:What is the credit rating date for this company?
A:Tuesday, April 23, 2019
Q:What is the AI credit rating?
A:AI credit rating is an evaluation of the credit risk of a prospective debtor, predicting their ability to pay back the debt, and an implicit machine learning forecast of the likelihood of the debtor defaulting.
Q:What is the AI credit rating scale?
A:AI rating scale, which ranges from a maximum Aaa to a minimum C, consists of 21 notches and two categories: Investment category for the financially sound companies and Speculative category for the companies with a higher risk of defaulting.
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