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APi Group launches $1.2 billion term loan B at Libor plus 275-300 bps
By Sara Rosenberg
New York, Sept. 17 – APi Group Inc. launched at its bank meeting on Tuesday a $1.2 billion seven-year senior secured covenant-lite term loan B that is talked at Libor plus 275 basis points to 300 bps with a 0% Libor floor and an original issue discount of 99.5, according to a market source.
The term loan B has 101 soft call protection for six months and amortization of 1% per annum, the source said.
Mandatory prepayments are from 50% of excess cash flow, subject to leverage-based step-downs, 100% of asset sale proceeds, subject to reinvestment rights and leveraged-based step-downs, and 100% of debt issuance proceeds other than permitted debt.
The company’s $1.5 billion of credit facilities (Ba3/BB-) also include a $300 million revolver.
Citigroup Global Markets Inc., BofA Securities, Inc., Barclays and UBS Investment Bank are the joint lead arrangers on the deal. U.S. Bank is a co-manager. Citigroup is the administrative agent.
Commitments are due at 5 p.m. ET on Sept. 26, the source added.
Proceeds will be used to help fund the acquisition of the company by J2 Acquisition Ltd. for about $2.05 billion in cash and 28,373,000 ordinary shares in J2. The transaction is valued at about $2.9 billion.
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.
Closing is expected on Oct. 1.
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.
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