APi Group Announces Successful Completion of Debt Refinancing and Provides Update on Upcoming Investor Conference

APi Group Corporation (NYSE: APG) (“APG”, “APi” or the “Company”) a global, market-leading business services provider of life safety, security and specialty services, today announced the successful refinancing of all of its term loans through an upsizing and repricing of its term loans due 2029. The repricing reduces the applicable margin on all outstanding terms loans due 2029 by 50 basis points and removes the credit spread adjustment, representing an estimated cash interest savings of approximately $12 million annually.

As part of the transaction, APi incurred approximately $2,257 million of incremental term loans due 2029 under its credit agreement, the proceeds of which were used (i) to refinance and reprice its existing $1,707 million of term loans due 2029, (ii) to repay the remaining $330 million of term loans due 2026, (iii) to repay the $100 million of revolving credit loans outstanding under its credit agreement and (iv) for general corporate purposes, including to partially fund the pending acquisition of Elevated Facilities Services Group (“Elevated”). The refinancing transaction was completed through an amendment to APi’s credit agreement, which closed on May 10, 2024. Following this transaction and the expected close of the Elevated acquisition, APi anticipates having a net leverage ratio of approximately 2.8x (calculated pursuant to the credit agreement) with a weighted average maturity of approximately 5 years. APi’s aggregate $1,120 million of interest rate swaps related to its term loans remain in effect.

Kevin Krumm, Chief Financial Officer, commented, “We are pleased with the market’s positive reception to the term loan repricing. We achieved a 50 basis points reduction in our term loan borrowing rate, plus the removal of the credit spread adjustment (approximately 11.5 basis point incremental savings), while raising an incremental $120 million, with no impact to our credit ratings. Following the repricing, we remain in a position of balance sheet strength providing continued flexibility to take advantage of what we believe to be a robust M&A pipeline. We believe we can continue to execute our M&A strategy at attractive multiples, with a specific focus on opportunities which are accretive to our financial targets.”