APi Group driving by with $300 million eight-year senior notes; initial talk high 4% area

By Paul A. Harris

Portland, Ore., Oct. 6 – APi Escrow Corp. plans to price a $300 million issue of eight-year senior notes (B1/B) in a Wednesday drive-by trailing a conference call with investors, according to market sources.

Initial guidance has the notes coming to yield in the high 4% area, a trader said.

Citigroup Global Markets Inc. is the left bookrunner. Barclays, RBC Capital Markets LLC, Blackstone, J.P. Morgan Securities LLC, UBS Securities LLC and U.S. Bancorp Investments Inc. are the joint bookrunners.

The Rule 144A and Regulation S for life notes become callable after three years at par plus 50% of the coupon. They feature a three-year 35% equity clawback at par plus the full coupon and a 101% poison put.

Proceeds will be used to help fund the acquisition of the Chubb Fire & Security business from Carrier Global Corp.

Initial issuer APi Escrow will be merged with and into APi Group DE, Inc. when the Chubb transaction closes.

APi is a New Brighton, Minn.-based business services provider of safety, specialty and industrial services.

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