ADT drops after Apollo's upsized share sale priced

ADT

07/03/2024 13:05

** ADT Inc's  ADT.N  stock down 9% at $6.80 premarket as
Apollo Global Management  APO.N  reduces its holdings in home
security firm
    ** ADT late Weds announced pricing secondary offering of 65
mln shares sold by private equity sponsor at $6.50, 13% discount
to last sale
    ** Offering size boosted from 55 mln shares
    ** In addition, ADT to repurchase 15 mln shares as part of
the offering under its existing $350 mln buyback program
    ** Transactions take Apollo's holdings to ~433.3 mln shares,
or roughly 51% stake, per the SEC prospectus filing
    ** ADT's shares had risen past 6 sessions for 14% gain since
co on Feb 28 posted Q4 adj EPS of $0.25 vs LSEG estimate of
$0.04 profit
    ** For 2024, co projected adj EPS of $0.60-$0.70 and free
cash flow of $700-$800 mln, about 50% increase yr/yr
    ** YTD, ADT's shares up 9.5% through Weds for $6.9 bln
market cap
    ** Morgan Stanley, Barclays, Apollo Global Securities and
RBC are bookrunners for secondary offering
    ** ADT went public in Jan 2018 after its IPO priced at $14

 (Lance Tupper is a Reuters market analyst. The views expressed
are his own)
 ((lance.tupper@thomsonreuters.com
lance.tupper@tr.com 1-646-279-6380))