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ADT TO LENGTHEN DEBT MATURITIES

 BOCA RATON, Fla., June 1 /PRNewswire/ -- ADT Limited (NYSE: ADT), a leading electronic security services and vehicle auction services company, announced today that it has filed a registration statement with the Securities and Exchange Commission (the "SEC") relating to a public offering by ADT Limited of 18,000,000 common shares. ADT also announced that it has received bank commitments from the Bank of Nova Scotia and Chemical Bank for a new $500 million credit facility. In addition, within the next few days, a subsidiary of ADT Limited will file a registration statement with the SEC relating to public offerings of $250 million of senior notes due 2000, guaranteed on a senior basis by ADT Limited and certain subsidiaries, and $350 million of senior subordinated notes due 2003, guaranteed on a senior subordinated basis by ADT Limited.
 The proposed common share offering, the new credit facility and the proposed public debt offerings are integral parts of ADT's plan to lengthen the maturities of ADT's debt financing and to provide a source of funds for the redemption of some or all of its outstanding convertible redeemable preference shares. The holders of these preference shares have the option to, and are expected to, present the preference shares for redemption in 1994.
 The credit facility will consist of (i) a six-year $250 million term loan facility amortizing over four and one half years commencing in December 1994 and (ii) a $250 million revolving credit facility repayable, in full, six years from the closing of the refinancing. The loans under the new credit facility will be guaranteed by ADT Limited and certain subsidiaries. The commitments are subject to final documentation and other conditions, including the concurrent closing of the public offerings on the terms and in the amounts contemplated.
 ADT Limited will use the net proceeds of the proposed public offerings, together with cash on hand, to repay all indebtedness outstanding under ADT's two principal existing credit facilities, which will be cancelled, and to repay certain other long-term debt.
 The term loan facility, which may be utilized until Oct. 15, 1994, will be used to fund the redemption, repurchase or retirement of the convertible redeemable preference shares. The revolving credit facility will be used to assist with the refinancing of the indebtness of certain of ADT's subsidiaries, to provide for the ongoing working capital and letter of credit requirements and to assist in the redemption, repurchase or retirement of the convertible redeemable preference shares.
 The common share offering will be managed by the First Boston Corporation and Merrill Lynch & Co. After completion of the common share offering, ADT Limited will have 127,629,629 common shares outstanding or 130,329,629 common shares outstanding, if the underwriters' over-allotment is exercised in full.
 A registration statement relating to the common shares to be offered has been filed with the Securities and Exchange Commission but has not yet become effective. These securities may not be sold nor may offers to buy be accepted prior to the time the registration statement becomes effective. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of these securities in any state or country in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or country.
 The offering of the senior notes and the senior subordinated notes will be made only by means of a prospectus.
 -0- 6/1/93
 /CONTACT: ADT, 407-997-8406, or Johnnie D. Johnson & Co., 212-425-4848, for ADT/
 (ADT)


CO: ADT Limited ST: Florida IN: CPR SU: OFR

GK-SM -- NY010 -- 3785 06/01/93 08:48 EDT
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Publication:PR Newswire
Date:Jun 1, 1993
Words:617
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