Pounds 800m ADT refinancing package

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NEW YORK - The electronic security services and vehicle auction group ADT, headed by Michael Ashcroft, has announced a refinancing package to lengthen the maturity of its debt and provide funds for the company's convertible redeemable preference shares, which may be redeemed by holders next year, writes Michael Marray.

The dollars 1.25bn ( pounds 800m) package includes a public offering of 18 million ADT shares in the US, where the company has been listed on the New York Stock Exchange since 1981. The stock offering, to be led by First Boston and Merrill Lynch, will raise approximately dollars 150m. ADT shares opened yesterday at dollars 8.875.

ADT subsidiaries will also, in the next few days, file a registration statement with the Securities and Exchange Commission for a dollars 250m public offering of seven-year senior notes, plus a dollars 350m 10-year senior subordinated note offering. To complete the refinancing package, ADT has received commitments from Chemical Bank and Bank of Nova Scotia for a new dollars 500m credit facility.

Proceeds of the public offerings will be used to repay and cancel ADT's two existing principal credit facilities and some other long-term debt. The dollars 500m facility will fund the redemption of the preference shares as well as provide working capital for the group.