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APi Group revises $1.1 billion term loan B OID to 99.5
By Sara Rosenberg
New York, Oct. 6 – APi Group Inc. changed the original issue discount on its $1.1 billion seven-year senior secured incremental covenant-lite first-lien term loan B (Ba1/BB-) to 99.5 from 99, according to a market source.
Pricing on the term loan remained at Libor plus 275 basis points with a 0% Libor floor.
The 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, subject to customary exceptions with respect to foreign guarantors.
Citigroup Global Markets Inc., Barclays, RBC Capital Markets, UBS Investment Bank, JPMorgan Chase Bank, U.S. Bank and Blackstone are the joint lead arrangers on the deal. Citi is the administrative agent.
Commitments continue to be due at noon ET on Thursday, the source added.
Proceeds will be used to help fund the acquisition of the Chubb Fire & Security business from Carrier Global Corp. 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.
Other funds for the Chubb transaction are expected to come from $300 million of senior notes, cash on hand and a perpetual preferred equity financing from Blackstone Group and Viking Global Investors.
Closing is expected in early January, 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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