v3.25.2
DEBT
 6 Months Ended
Jun. 30, 2025
Debt Disclosure [Abstract]  
DEBT DEBT
The Company’s debt is comprised of the following (in thousands):
DescriptionIssuedMaturity
Interest Rate(1)
Interest PayableJune 30, 2025December 31, 2024
First Lien Term Loan B due 2030
10/13/202310/13/2030
Term SOFR +2.00%
Quarterly$1,974,169 $1,984,090 
First Lien Term Loan B-2 due 20323/7/20253/7/2032
Term SOFR +1.75%
Quarterly598,500 — 
First Lien Revolving Credit Facility
3/16/201810/1/2029
Term SOFR +2.00%
Quarterly
— — 
First Lien Notes due 20264/4/20194/15/20265.750%3/15 and 9/15850,000 1,350,000 
First Lien Notes due 20278/20/20208/31/20273.375%6/15 and 12/151,000,000 1,000,000 
First Lien Notes due 20297/29/20218/1/20294.125%2/1 and 8/11,000,000 1,000,000 
Second Lien Notes due 20281/28/20201/15/20286.250%1/15 and 7/151,300,000 1,300,000 
ADT Notes due 20325/2/20167/15/20324.875%1/15 and 7/15728,016 728,016 
ADT Notes due 20427/5/20127/15/20424.875%1/15 and 7/1521,896 21,896 
2020 Receivables Facility(2)
3/5/20205/20/2030VariousMonthly439,772 407,901 
Total debt principal, excluding finance leases7,912,353 7,791,903 
Finance lease liabilities(3)
56,028 69,442 
Unamortized debt discount, net(16,470)(12,081)
Unamortized deferred financing costs(26,482)(26,990)
Unamortized purchase accounting fair value adjustment and other(110,037)(115,201)
Total debt7,815,392 7,707,073 
Current maturities of long-term debt, net of unamortized debt discount(1,064,298)(195,791)
Long-term debt$6,751,094 $7,511,282 
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(1)    Interest rate as of June 30, 2025. Interest on the 2020 Receivables Facility is primarily based on the Secured Overnight Financing Rate (“SOFR”) +0.95% and Lender Cost of Funds (“COF”) +0.85%.
(2)    Maturity date for the 2020 Receivables Facility represents the final maturity date of current loans borrowed under the facility.
(3)    Refer to Note 13 “Leases” for additional information regarding the Company’s finance leases.
As of June 30, 2025, the Company was in compliance with all financial covenant and other maintenance tests for all of its debt obligations.
First Lien Credit Agreement
The Company’s first lien credit agreement, dated as of July 1, 2015 (together with subsequent amendments and restatements, the “First Lien Credit Agreement”), consists of term loans (the “First Lien Term Loan B due 2030” and “First Lien Term Loan B-2 due 2032”) and the First Lien Revolving Credit Facility.
During the six months ended June 30, 2025, the Company borrowed and repaid $133 million under the First Lien Revolving Credit Facility. As of June 30, 2025, the available borrowing capacity was $800 million.
During the six months ended June 30, 2024, the Company borrowed and repaid $260 million under the First Lien Revolving Credit Facility.
Significant activity since December 31, 2024 is as follows:
•March 2025 - The Company amended and restated the First Lien Credit Agreement, which provided for the issuance of a new $600 million first lien seven-year term loan facility (the “First Lien Term Loan B-2 due 2032”) due March 7, 2032 (subject to a springing maturity of 91 days prior to the maturity date of certain long-term indebtedness of Prime Security Services Borrower, LLC and its subsidiaries if, on such date, the aggregate principal amount of such indebtedness equals or exceeds $1 billion). Loans under the First Lien Term Loan B-2 due 2032 are treated as a separate class from the existing loans under the First Lien Term Loan due 2030. The First Lien Term Loan B-2 due 2032 requires scheduled quarterly amortization payments, commencing on June 30, 2025, equal to 0.25% of the original principal amount of the First Lien Term Loan B-2 due 2032, with the remaining balance payable at maturity. Debt issuance costs were not material. The Company may make voluntary prepayments on the First Lien Term Loan B-2 due 2032 at any time prior to maturity at par, however, such prepayment will be subject to a 1.00% prepayment premium in the event of certain specified refinancing events during the first six months after March 7, 2025.
•June 2025 - Certain lenders provided commitments to fund an additional $550 million of term loans as part of the First Lien Term Loan B-2 due 2032. The closing of this transaction, which remains subject to market and other customary conditions, is expected to occur on or around July 25, 2025. Additionally, during June 2025, the Company issued a notice of partial redemption for $550 million of the First Lien Notes due 2026, which will be redeemed on July 27, 2025. The Company intends to use proceeds from the First Lien Term Loan B-2 due 2032 for the partial redemption of the First Lien Notes due 2026.
Other than as described above, the term loans under the amended and restated First Lien Credit Agreement continue to have the same terms as provided under the existing First Lien Credit Agreement, and the parties to the amended and restated First Lien Credit Agreement continue to have the same obligations set forth in the existing First Lien Credit Agreement.
First Lien Notes due 2026 Partial Redemption
Significant activity since December 31, 2024 is as follows:
•March 2025 - The Company redeemed $500 million of the First Lien Notes due 2026, excluding accrued and unpaid interest, for a total redemption price of $506 million, which includes a make-whole payment, using proceeds from the Company’s issuance of the First Lien Term Loan B-2 due 2032. Loss on extinguishment of debt was not material.
•June 2025 - As noted above, the Company issued a notice of partial redemption for $550 million of the First Lien Notes due 2026, which will be redeemed on July 27, 2025.
2020 Receivables Facility
Under the 2020 Receivables Facility, the Company obtains financing by selling or contributing certain RICs to the Company’s wholly-owned consolidated bankruptcy-remote special purpose entity (the “SPE”), which then grants a security interest in those RICs as collateral for cash borrowings.
Significant activity since December 31, 2024 is as follows:
•March 2025 - The Company amended the agreement governing the 2020 Receivables Facility to extend the uncommitted revolving period to March 2026, reduce the interest rate on outstanding borrowings, and increase the advance rate on pledged collateral.
As of June 30, 2025, the Company had an uncommitted available borrowing capacity under the 2020 Receivables Facility of approximately $110 million.
Variable Interest Entity
The SPE meets the definition of a variable interest entity for which the Company is the primary beneficiary as it has the power to direct the SPE’s activities and the obligation to absorb losses or the right to receive benefits of the SPE. As such, the Company consolidates the SPE’s assets, liabilities, and financial results of operations.
The SPE’s assets and liabilities primarily consist of a portion of the Company’s unbilled RICs, net, as discussed in Note 2 “Revenue and Receivables,” and borrowings under the 2020 Receivables Facility, as presented above.
The impact to the Condensed Consolidated Statements of Operations from the 2020 Receivables Facility was primarily due to the allowance for credit losses and interest expense.