APi Group Corporation Announces Private Placement of $300 Million of Senior Notes
October 06, 2021 at 08:34 am EDT
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APi Group Corporation announced that APi Escrow Corp., a wholly-owned subsidiary of the Company intends to offer $300 million aggregate principal amount of Senior Notes due 2029 in a private offering, subject to market and other customary conditions. The gross proceeds from the private offering will be deposited into an escrow account for the benefit of the holders of the Notes until the date on which certain escrow conditions are satisfied, including the closing of the Company’s previously announced proposed acquisition of Chubb. The Chubb Acquisition is expected to close around year-end 2021. APi intends to use the net proceeds from the sale of the Notes to finance a portion of the consideration for the Chubb Acquisition and related fees and expenses. However, if the closing of the Chubb Acquisition does not occur on or before October 27, 2022, the indenture governing the Notes will require that such amounts deposited in the escrow account be used to redeem all of the Notes then outstanding at the special mandatory redemption price. Prior to the consummation of the Chubb Acquisition, the Notes will be the sole obligation of the Escrow Issuer. Substantially concurrent with the consummation of the Chubb Acquisition, the Escrow Issuer will be merged with and into APi Group DE Inc. (“APi DE”), a wholly-owned subsidiary of the Company, with APi DE continuing as the surviving entity. APi DE will then assume all of the obligations of the Escrow Issuer under the Notes and the related indenture governing the Notes and the Notes will be fully and unconditionally guaranteed on a senior unsecured basis by the Company and certain of the Company’s existing and future domestic subsidiaries.
APi Group Corporation is a business services provider of safety and specialty services in over 500 locations worldwide. The Companyâs segments include Safety Services and Specialty Services. The Safety Services segment provides safety services in North America, Europe, and Asia Pacific, focusing on end-to-end integrated occupancy systems, including design, installation, inspection, and service of these integrated systems. The work performed within this segment spans across industries and facilities and includes commercial, education, healthcare, high tech, industrial, and special-hazard settings. The Specialty Services segment provides a variety of infrastructure services and specialized industrial plant services, which include maintenance and repair of critical infrastructure, such as underground electric, gas, water, sewer, and telecommunications infrastructure. Its services include engineering and design, fabrication, installation, maintenance service and repair, and others.