APi Group plans $1.38 billion credit facilities for purchase by J2

By Sara Rosenberg

New York, Sept. 4 – APi Group Inc. plans on getting $1.38 billion of credit facilities to help fund its acquisition by J2 Acquisition Ltd., according to a company presentation.

The facilities consist of a $300 million revolver and a $1.08 billion term loan B.

Citigroup Global Markets Inc., BofA Securities Inc., Barclays and UBS Investment Bank have committed to provide the debt financing.

Other funds for the transaction will come from J2 cash on hand, an early warrant exchange and rollover equity from existing shareholders at $10.25 per share.

Pro forma net debt leverage is expected to be 2.8x LTM June 2019 adjusted EBITDA.

Under the agreement, current APi shareholders will receive about $2.05 billion in cash and 28.373 million ordinary shares in J2 and will own around 14.5% of the company at closing. The transaction is valued at about $2.9 billion.

Closing is expected in the fourth quarter, subject to customary conditions.

Upon closing, J2, a special-purpose acquisition entity, intends to change its name to APi Group Corp.

APi is a New Brighton, Minn.-based provider of commercial life safety solutions and industrial specialty services, and a specialty contractor.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.