APi Group flexes $1.2 billion term loan B to Libor plus 250 bps

By Sara Rosenberg

New York, Sept. 26 – APi Group Inc. reduced pricing on its $1.2 billion seven-year senior secured covenant-lite term loan B to Libor plus 250 basis points from talk in the range of Libor plus 275 bps to 300 bps, according to a market source.

As before, the term loan has a 0% Libor floor, an original issue discount of 99.5 and 101 soft call protection for six months.

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 10 a.m. ET on Friday, and allocations are expected thereafter, 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 Tuesday.

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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