APi Group sets sizes and pricing of 2026 and 2029 term loans

By Sara Rosenberg

New York, Oct. 5 – APi Group DE Inc. firmed the size of its covenant-lite first-lien term loan B due Oct. 10, 2026 at $505 million and the size of its covenant-lite first-lien term loan B due Jan. 3, 2029 at $1.407 billion, according to a market source.

Also, pricing on the 2026 term loan was set at SOFR plus 225 basis points, the high end of the SOFR plus 200 bps to 225 bps talk, and pricing on the 2029 term loan was set at SOFR plus 250 bps, the high end of the SOFR plus 225 bps to 250 bps talk, the source said.

Both term loans still have a 0% floor, a par issue price, 101 soft call protection for six months, and ARRC CSA of 11.448 bps one-month rate, 26.161 bps three-month rate and 42.826 bps six-month rate.

Citigroup Global Markets Inc., BofA Securities Inc., Barclays, Jefferies LLC, JPMorgan Chase Bank, RBC Capital Markets and US Bank are the lead arrangers on the deal (Ba1/BB-). Citi is the agent.

Proceeds will be used to reprice a portion of the company’s existing $1.027 billion covenant-lite first-lien term loan B due Oct. 10, 2026, extend a portion of the 2026 term loan and reprice an existing $985 million covenant-lite first-lien term loan B due Jan. 3, 2029.

Final sizes of the 2026 and 2029 term loans were based on lender participation in the extension option.

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

Closing is expected during the week of Oct. 9.

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

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