ADT Inc. provides update on capital allocation strategy

ADT Inc. has authorized a $350M share repurchase program. As the company executes share repurchases, the Board will periodically review the remaining authorization as part of its capital allocation strategy. On December 29, 2023, the company repaid $500M of First Lien Senior Secured Notes due 2024, completing an overall 2023 reduction of ADT‘s total debt by approximately $2B. Following two corporate rating upgrades in 2023, the company improved borrowing costs and extended debt maturities and in 2024, will have $150M of maturities and amortization payments. The company remains focused on achieving its targeted net leverage ratio of less than 3.0x. On December 20, 2023, the company closed on a strategic bulk purchase of approximately 57,000 customer accounts for $89M cash with attractive returns. This portfolio of customers is concentrated in a few key geographies, all of which align with existing platforms, enabling strong economies of scale upon integration. This transaction was not included in prior cash flow guidance.