APi Group launches $2.01 billion of term loans to investors

By Sara Rosenberg

New York, Oct. 2 – APi Group DE Inc. was scheduled to hold a lender call at 10 a.m. ET on Monday to launch a repricing of its existing $985 million covenant-lite incremental first-lien term loan B due Jan. 3, 2029 and a repricing of its existing $1.027 billion covenant-lite first-lien term loan B due Oct. 10, 2026 with an option to extend the debt to January 2029, according to a market source.

The final size of the 2029 and 2026 term loans will be based on lender participation in the extension option.

Price talk on the 2029 term loan B is SOFR+CSA plus 225 basis points to 250 bps with a 0% floor and a par issue price, and talk on the 2026 term loan B is SOFR+CSA plus 200 bps to 225 bps with a 0% floor and a par issue price, the source said.

CSA is ARRC standard of 11.448 bps one-month rate, 26.161 bps three-month rate and 42.826 bps six-month rate.

The term loans will include 101 soft call protection for six months and amortization of 1% per annum that will be reset based on pro forma tranche sizes.

Citigroup Global Markets Inc. is the left lead arranger on the deal (Ba1/BB-) and the agent.

Commitments from existing lenders are due at 5 p.m. ET on Wednesday and commitments from new lenders are due at noon ET on Thursday, the source added.

The repricing will take the 2029 term loan down from SOFR+ARRC CSA plus 275 bps and the 2026 term loan down from SOFR+ARRC CSA plus 250 bps.

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

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.