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Frontdoor Announces Pricing of Secondary Equity Offering of Remaining Shares of Common Stock Held by ServiceMaster

MEMPHIS, Tenn.--(BUSINESS WIRE)--

Frontdoor, Inc. (FTDR) (“Frontdoor”), the largest provider of home service plans in the United States, today announced the pricing of its previously announced underwritten offering of 16,734,092 shares of its common stock currently owned by ServiceMaster Global Holdings, Inc. (“ServiceMaster”), Frontdoor’s former parent company. The offering is being made pursuant to a registration statement on Form S-1 filed with the U.S. Securities and Exchange Commission (the “Commission”). The public offering price is $30.00 per share. Frontdoor is not selling any shares and will not receive any proceeds from the sale of the shares in the offering. The offering is expected to close on March 27, 2019, subject to customary closing conditions.

Following the completion of the offering, ServiceMaster will no longer own any shares of common stock of Frontdoor.

J.P. Morgan Securities LLC and Goldman Sachs & Co. LLC are acting as joint lead book-runners for the offering and as representatives of the underwriters. Credit Suisse Securities (USA) LLC and Wells Fargo Securities, LLC are also acting as joint book-runners. Guggenheim Securities, LLC, SunTrust Robinson Humphrey, Inc., Raymond James & Associates, Inc. and William Blair & Company, L.L.C. are acting as co-managers for the offering.

A registration statement on Form S-1 relating to these securities has been declared effective by the Commission. 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 jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.

The offering is being made only by means of a prospectus supplement and an accompanying prospectus. A copy of the preliminary prospectus supplement and accompanying prospectus related to the offering may be obtained from: J.P. Morgan Securities LLC, c/o Broadridge Financial Solutions, 1155 Long Island Avenue, Edgewood, NY 11717, or by calling toll-free at (866) 803-9204; or Goldman Sachs & Co. LLC, Attention: Prospectus Department, 200 West Street, New York, NY 10282, or by calling toll-free at (866) 471-2526, or by facsimile at (212) 902-9316 or via email at prospectus-ny@ny.email.gs.com. You may also obtain a copy of the preliminary prospectus supplement and accompanying prospectus, without charge, by visiting the SEC’s website at http://www.sec.gov.

About Frontdoor

Frontdoor is the largest provider of home service plans in the United States, as measured by revenue, and operates under the American Home Shield, HSA, OneGuard and Landmark brands. Frontdoor serves more than two million customers across all 50 states and the District of Columbia through a network of over 16,000 pre-qualified contractor firms that employ over 45,000 technicians.

Forward-Looking Statements

This news release and other oral or written statements that we make from time to time, may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, regarding business strategies, market potential, future financial performance and other matters. Forward-looking statements can be identified by the use of forward-looking terms such as “believe,” “expect,” “estimate,” “could,” “intend,” “may,” “plan,” “seek,” “anticipate,” “project” or other comparable terms. These forward-looking statements are subject to known and unknown risks and uncertainties, many of which may be beyond our control. Such risks and uncertainties include, but are not limited to: weather conditions and seasonality; weakening general economic conditions; lawsuits, enforcement actions and other claims by third parties or governmental authorities; the effects of our substantial indebtedness; the success of our business strategies; and failure to achieve some or all of the expected benefits of our separation from ServiceMaster. We caution you that forward-looking statements are not guarantees of future performance or outcomes and that actual performance and outcomes, including, without limitation, our actual results of operations, financial condition and liquidity, and the development of new markets or market segments in which we operate, may differ materially from those made in or suggested by the forward-looking statements contained in this news release. For a discussion of other important factors that could cause Frontdoor’s results to differ materially from those expressed in, or implied by, the forward-looking statements included in this document, you should refer to the risks and uncertainties detailed in Frontdoor’s periodic reports filed with the Commission as well as the disclosure contained under the heading “Risk Factors” in our registration statement on Form S-1 filed with the Commission. Except as required by law, Frontdoor does not undertake any obligation to update or revise these forward-looking statements to reflect new information or events or circumstances that occur after the date of this news release or to reflect the occurrence of unanticipated events or otherwise.

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