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.
We work across the world

From London to San Francisco, to our home base in (Saint Helier) Jersey, we’re looking for extraordinary and creative scientists to help us drive the field forward.

AC Investment Inc. currently does not act as an equities executing broker or route orders containing equities securities. If AC Invest’s business model were to change and it begins routing non-directed orders in NMS securities, it will comply with the disclosure requirement of Rule 606.

77 Massachusetts Avenue Cambridge, MA 02139 617-253-1000 pr@ademcetinkaya.com