APi Group tightens $250 million term loan discount to 98.5

By Sara Rosenberg

New York, Oct. 14 – APi Group Inc. revised the original issue discount on its non-fungible $250 million incremental senior secured covenant-lite term loan B (Ba3/BB-) due October 2026 to 98.5 from 98, according to a market source.

Pricing on the incremental term loan remained at Libor plus 275 basis points with a 0% Libor floor.

The incremental term loan has 101 soft call protection for six months and amortization of 1% per annum.

Security is a perfected first priority lien on substantially all tangible and intangible assets and capital stock of the borrower and guarantors.

Citigroup Global Markets Inc. and U.S. Bank are the joint lead arrangers on the deal. Citigroup is the administrative agent.

Proceeds will be used to replenish balance sheet cash and to pay transaction costs, fees and expenses.

The company is also seeking an amendment to its credit agreement to add guarantors organized outside of the United States and Canada subject to certain agreed security principles and a guarantor coverage test of at least 85% of consolidated EBITDA.

Lenders are being offered a 10 bps amendment fee.

Commitments and consents continued to be due at noon ET on Wednesday, the source added.

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

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