J2 Acquisition Limited Secured Debt Credit Facilities Successful Results (2434O)
October 01 2019 - 1:00AM
UK Regulatory
TIDMJTWO TIDMJTOW
RNS Number : 2434O
J2 Acquisition Limited
30 September 2019
J2 Acquisition and APi Group DE, Inc. Announce Successful
Results of Secured Debt Credit Facilities
-Term loan facility is priced at 250bps over Libor-
-Company is well positioned to execute on its strategy-
TORTOLA, British Virgin Islands September 30, 2019 - APi Group
DE, Inc. (the "Company"), a wholly owned subsidiary of J2
Acquisition Limited ("J2") (OTC: JJAQF), announced today the
results of its $1.2 billion 7 year senior secured term loan
facility (the "Term Loan Facility") and $300 million 5 year senior
secured revolving facility (the "Revolving Credit Facility" and
together with the Term Loan Facility, the "Credit Facilities").
The Term Loan Facility was priced at a rate of 250 bps over
Libor, the Revolving Credit Facility was priced at a rate of 225
bps over Libor and the Credit Facilities generally are covenant
lite with a 0% Libor floor. The Company received ratings of "Ba3"
from Moody's and "BB-" from Standard and Poor's, both with a stable
credit outlook.
Sir Martin E. Franklin. Co-Founder of J2 said, "We are delighted
the credit markets demonstrated strong support for the acquisition
of APi Group, Inc. and we believe will provide an attractive
long-term funding arrangement for APi Group. The result of our debt
financing is expected to be accretive to our previously shared pro
forma earnings per share. We are pleased with the result of the
offering and believe we are well positioned to execute on our
growth strategy."
The closing of the Credit Facilities is contingent upon the
closing of the acquisition of APi Group, Inc., (the "Transaction"),
which is expected to occur on October 1, 2019.
Citigroup, Bank of America Merrill Lynch, Barclays and UBS acted
as Lead Arrangers and U.S. Bank acted as Co-Manager on the Credit
Facilities.
About J2:
As a result of the Transaction, J2, to be renamed APi Group
Corporation, will acquire APi Group, Inc. APi Group, Inc. is a
market leading provider of commercial life safety solutions and
industrial specialty services. APi Group, Inc. is the leading
independent life safety services provider and a top-5 specialty
services contractor in the U.S. with a diversified, blue chip
customer and supplier base, a robust service offering, and a track
record of successful acquisitions. APi Group, Inc. operates three
segments in over 200 locations primarily in the U.S., with its
international operations being focused on Canada and the UK. More
information can be found at https://www.apigroupinc.com/.
Forward-Looking Statements and Disclaimers:
This announcement does not constitute or form part of any offer
or invitation to purchase, otherwise acquire, issue, subscribe for,
sell or otherwise dispose of any securities, nor any solicitation
of any offer to purchase, otherwise acquire, issue, subscribe for,
sell, or otherwise dispose of any securities.
The release, publication or distribution of this announcement in
certain jurisdictions may be restricted by law and therefore
persons in such jurisdictions into which this announcement is
released, published or distributed should inform themselves about
and observe such restrictions.
Certain statements in this announcement are forward-looking
statements which are based on J2's and the Company's expectations,
intentions and projections regarding J2's and the Company's future
performance, anticipated events or trends and other matters that
are not historical facts, including expectations regarding: (i) the
long-term funding arrangement and its impact on previously
disclosed pro forma earnings per share; (ii) the ability of J2 and
the Company to execute on their growth strategy; and (iii) the
closing of the Transaction, the Credit Facilities and the timing
thereof. These statements are not guarantees of future performance
and are subject to known and unknown risks, uncertainties and other
factors that could cause actual results to differ materially from
those expressed or implied by such forward-looking statements,
including: (i) economic conditions, competition and other risks
that may affect J2's and the Company's future performance; (ii) the
risk that securities markets will react negatively to the
Transaction or other actions by J2 or the Company after completion
of the Transaction; (iii) the risk that the Transaction disrupts
current plans and operations as a result of the consummation of the
Transaction; (iv) the ability to recognize the anticipated benefits
of the Transaction and of J2 and the Company to take advantage of
strategic opportunities; (v) the limited liquidity and trading of
J2's securities; (vi) changes in applicable laws or regulations;
(vii) the possibility that J2 and the Company may be adversely
affected by other economic, business, and/or competitive factors;
and (viii) other risks and uncertainties.
Given these risks and uncertainties, prospective investors are
cautioned not to place undue reliance on forward-looking
statements. Forward-looking statements speak only as of the date of
such statements and, except as required by applicable law, neither
J2 nor the Company undertakes any obligation to update or revise
publicly any forward-looking statements, whether as a result of new
information, future events or otherwise. Nothing in this
announcement constitutes or should be construed as constituting a
profit forecast.
This announcement contains inside information as defined in
article 7 of the Market Abuse Regulation (EU) No 596/2014.
Media Contacts:
Liz Cohen
Kekst CNC
+1 212-521-4845
Liz.Cohen@kekstcnc.com
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END
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