APi Group readies launch of new credit facilities for Tuesday

By Sara Rosenberg

New York, Sept. 16 – APi Group Inc. is scheduled to hold a bank meeting at 10 a.m. ET in New York on Tuesday to launch its proposed credit facilities, according to a market source.

Citigroup Global Markets Inc., BofA Securities Inc., Barclays and UBS Investment Bank have committed to provide the debt financing.

Based on a company presentation, the credit facilities are expected to consist of a $300 million revolver and a $1.08 billion term loan B.

Proceeds will be used to help fund the acquisition of the company by J2 Acquisition Ltd.

Under the agreement, current APi shareholders will receive about $2.05 billion in cash and 28,373,000 ordinary shares in J2 and will own around 14.5% of the company at closing. The transaction is valued at about $2.9 billion.

Other funds for the transaction will come from J2 cash on hand, an early warrant exchange and rollover equity from existing shareholders at $10.25 per share.

Pro forma net debt leverage is expected to be 2.8x LTM June 2019 adjusted EBITDA.

Closing is expected in the fourth quarter, subject to customary conditions.

Upon closing, J2, a special-purpose acquisition entity, intends to change its name to APi Group Corp.

APi is a New Brighton, Minn.-based provider of commercial life safety solutions and industrial specialty services, and a specialty contractor.

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