APi Group (APG) Reprices Term Loans

APi Group Corporation (NYSE: APG) (“APi” or the “Company”), a global, market-leading business services provider of life safety, security and specialty services, today announced the successful repricing of its Term Loans due 2026 and 2029, respectively. The repricing reduces the applicable margin on all outstanding amounts by 25 basis points representing cash savings of approximately $4 million annually.

Additionally, $422 million of the Term Loan due 2026 will be extended to 2029, assuming all the same terms as the repriced Term Loan due 2029. APi will repay $100 million of the Term Loan due 2026 concurrent with the close of this transaction. Following the transaction, APi will have $505 million outstanding on its Term Loan due 2026 and $1,407 million outstanding on its Term Loan due 2029. APi’s aggregate $1,120 million of interest rate swaps related to its Term Loans will remain in effect following the repricing and extension. The closing of the transaction is expected to occur next week, subject to customary closing conditions.

Kevin Krumm, Chief Financial Officer, commented, “We are pleased to announce the successful completion of our Term Loan repricing and maturity extension. We achieved a 25 basis point reduction in our Term Loan borrowing rate with no change to our covenants, while extending our weighted average maturity. Since the acquisition of Chubb in January of 2022, we have remained committed to reducing net leverage and expect to be within our 2.0 – 2.5x net leverage target by year end 2023.”

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