APi Group plans new debt financing for Chubb Fire purchase

By Sara Rosenberg

New York, July 27 – APi Group Corp. plans on using new debt to help fund its acquisition of the Chubb Fire & Security business from Carrier Global Corp., according to a company presentation.

Barclays and Citi provided the financing commitment.

Other funds for the transaction will come from cash on hand and an $800 million perpetual preferred equity financing from Blackstone Group and Viking Global Investors.

The expected pro forma target net leverage ratio is 4.25x before synergies at closing with a goal of quickly returning to below 3.0x net leverage.

Under the agreement, Chubb is being bought 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.

Closing is expected around year-end, 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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