APi Group draws $200 million under revolver in ‘abundance of caution’

By Devika Patel

Knoxville, Tenn., April 8 – APi Group Corp. drew down $200 million under its revolver, leaving the company with a cash balance of about $404 million to withstand the current market conditions.

“As many other companies have done, and out of an abundance of caution, we recently drew down $200 million under our revolving credit facility,” chief financial officer Tom Lydon said on the company’s fourth quarter and year ended Dec. 31, 2019 earnings conference call on Wednesday.

“We continue to maintain a conservative balance sheet and have total cash on hand of approximately $404 million at March 31, including the drawdown on the revolver,” Lydon said.

The company is keeping an eye on its balance sheet in the current environment and taking a prudent approach until the Covid-19 pandemic ends.

“Our first priority is to protect our balance sheet and to be prudent as we look forward,” president and chief executive officer Russ Becker said on the call.

“Right now, we’re focused on making sure that we set the company up for the future and that we’re in a position to take more proactive action when we get on the back side of the pandemic,” Becker said.

As of Dec. 31, 2019, net debt to adjusted EBITDA ratio was 2.4x, within the company’s targeted range of 2x to 2.5x.

“[We have] a target long-term leverage ratio of 2x to 2.5x,” Becker said.

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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