| Add to balance / Manage account | User: | Log out |
| Prospect News home > News index > List of issuers A > Headlines for APi Group Inc. > News item |
APi Group revolver shifts to $500 million and adds springing maturity
Chicago, Dec. 20 – APi Group Inc. amended its credit agreement for the second time on Dec. 16 regarding some of the acquisition financing for the Chubb Fire & Security business from Carrier Global Corp. for an enterprise value of $3.1 billion, according to an 8-K filed with the Securities and Exchange Commission.
As previously reported, the financing includes a $1.1 billion seven-year senior secured incremental covenant-lite first-lien term loan B with pricing at Libor plus 275 basis points and a 0% Libor floor.
The Dec. 16 amendment also increases the revolving credit commitments to $500 million from $200 million.
The maturity date on the revolver portion is extended to the earlier of five years after the funding date and the date that is 91 days from the initial term loan maturity date if any of the term loan is still outstanding.
On the funding date, which is related to the closing of the Chubb acquisition, APi will draw all of the term loan and possibly some or all of the revolver.
The letter of credit sublimit will be increased to $250 million from $100 million, also on the funding date.
The Libor transition needs of the lenders will be addressed in the second amendment.
For the revolver, the interest rate is Libor plus 225 bps.
The commitment fee, based on the first-lien net leverage ratio, is either 37.5 bps or 50 bps.
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.
© 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.