API Group Corp. Saves $12M Annually

API Group Corporation (NYSE: APG) has successfully completed the refinancing of all its term loans, resulting in significant cash interest savings of approximately $12 million annually. The company incurred approximately $2,257 million of incremental term loans due 2029 under its credit agreement, which were used for various purposes including refinancing and repricing existing term loans, repaying outstanding loans, and for general corporate purposes.

The refinancing transaction, completed through an amendment to API’s credit agreement, closed on May 10, 2024, and the company anticipates having a net leverage ratio of approximately 2.8x with a weighted average maturity of approximately 5 years following the transaction and the expected close of the acquisition of Elevated Facilities Services Group.

Kevin Krumm, the Chief Financial Officer of API, expressed satisfaction with the market’s positive reception to the term loan repricing, highlighting a 50 basis points reduction in the term loan borrowing rate and the removal of the credit spread adjustment, resulting in estimated cash interest savings. He also emphasized the company’s balance sheet strength and its continued flexibility to pursue its M&A strategy.

In addition to the successful debt refinancing, API’s senior leadership is scheduled to participate in a fireside chat at the Bank of America Industrials Conference on Tuesday, May 14, 2024, at 3:40pm ET.

API Group Corporation is a global, market-leading business services provider of life safety, security, and specialty services with a substantial recurring revenue base and over 500 locations worldwide. The company provides statutorily mandated and other contracted services to a strong base of long-standing customers across industries. The market has reacted to these announcements by moving the company's shares -0.7% to a price of $37.06. Check out the company's full 8-K submission here.

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