APi Group launches $1.1 billion term loan B at Libor plus 275 bps

By Sara Rosenberg

New York, Sept. 29 – APi Group Inc. launched on its call on Wednesday a $1.1 billion seven-year incremental covenant-lite first-lien term loan B (BB-) that is talked at Libor plus 275 basis points with a 0% Libor floor and an original issue discount of 99, according to a market source.

The term loan has 101 soft call protection for six months and amortization of 1% per annum, the source said.

Security is a perfected first-priority lien on substantially all tangible and intangible assets and capital stock of the borrower and guarantors, subject to customary exceptions with respect to foreign guarantors.

Citigroup Global Markets Inc., Barclays, RBC Capital Markets, UBS Investment Bank, JPMorgan Chase Bank, U.S. Bank and Blackstone are the joint lead arrangers on the deal. Citi is the administrative agent.

Commitments are due at noon ET on Oct. 7, the source added.

Proceeds will be used to help fund the acquisition of the Chubb Fire & Security business from Carrier Global Corp. for an enterprise value of $3.1 billion, which is comprised of $2.9 billion cash and about $200 million of assumed liabilities and other adjustments.

Other funds for the Chubb transaction are expected to come from cash on hand and a perpetual preferred equity financing from Blackstone Group and Viking Global Investors.

Closing is expected in early January, subject to a consultation process and standard regulatory approvals.

APi is a New Brighton, Minn.-based business services provider of safety, specialty and industrial services. Chubb is a U.K.-based fire safety and security provider.

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