Vivint Smart Home announced that APX Group, Inc. (the “Issuer”), an indirect, wholly owned subsidiary of the Company, completed its offering of $800.0 million aggregate principal amount of 5.75% senior notes due 2029 (the “Notes”) in a private placement.

Vivint also announced that, concurrently with the Notes offering, the Issuer refinanced its existing credit facilities with (i) a new $1,350.0 million first lien senior secured term loan facility maturing in 2028 (the “New Senior Secured Term Loan Facility”) and (ii) a new $370.0 million senior secured revolving credit facility maturing in 2026 (the “New Senior Secured Revolving Credit Facility” and, together with the New Senior Secured Term Loan facility, the “New Senior Secured Credit Facilities”), with lenders party thereto and Bank of America 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.

Borrowings under the New Senior Secured Credit Facilities will bear interest at either:

(a) the greatest of (1) the U.S. “prime rate” as published in the Wall Street Journal, (2) the federal funds effective rate plus 0.50%, and (3) one-month LIBOR plus 1.00%, plus, in each case, a margin between 2.50% and 2.00%, depending on the first lien net leverage ratio of the applicable fiscal quarter, or

(b) LIBOR plus a margin between 3.50% and 3.00%, depending on the first lien net leverage ratio of the applicable fiscal quarter. The Company 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:

(i) redeem all $677.0 million of its outstanding 7.875% Senior Secured Notes due 2022 (the “2022 Notes”),

(ii) redeem all $400.0 million of its outstanding 7.625% Senior Notes due 2023 (the “2023 Notes”),

(iii) redeem all $225.0 million of its outstanding 8.500% Senior Secured Notes due 2024 (the “2024 Notes” and, together with the 2022 Notes and the 2023 Notes, the “Redeemed Notes”),

(iv) repay amounts outstanding, and to terminate all commitments, under its existing term loan and revolving credit facilities and

(v) pay the related redemption premiums and all fees and expenses related thereto. The Issuer irrevocably deposited funds with the applicable trustee and/or paying agent to effect the redemptions and to satisfy and discharge all of the Issuer’s remaining obligations under the indentures governing each series of the Redeemed Notes.

The Notes have not been and will not be registered under the Securities Act of 1933, as amended (the “Securities Act”) or any state securities laws. The Notes may not be offered or sold within the United States except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act and applicable state securities laws. The Notes were offered, by the initial purchasers, only to persons reasonably believed to be “qualified institutional buyers” in reliance on the exemption from registration provided by Rule 144A under the Securities Act and to certain non-U.S. persons in offshore transactions in reliance on Regulation S.

Vivint Smart Home is one of the largest smart home solutions providers in North America. Vivint delivers an integrated smart home system with in-home consultation, professional installation and support delivered by its Smart Home Pros, as well as 24/7 customer care and monitoring. Using Vivint’s solution, subscribers are able to interact with all aspects of their home with their voice or any mobile device-anytime, anywhere. Vivint’s average subscriber engages with its smart home app multiple times per day. Dedicated to redefining the home experience with intelligent products and services, Vivint serves over 1.7 million subscribers and manages over 20 million devices.