APi Group expands credit facility, announces stock split

APi Group Corporation (NYSE:APG), a $12.7 billion market cap company trading near its 52-week high of $48.08, has entered into a significant amendment to its credit agreement, as per the latest 8-K filing with the Securities and Exchange Commission (SEC). According to InvestingPro analysis, the company appears slightly overvalued at current levels, despite showing strong momentum with a 28.16% year-to-date return. On Monday, the company, through its subsidiary APi Group DE, Inc., finalized Amendment No. 8 to its existing credit agreement, which resulted in several key changes to its financial structure.

The amendment, effective May 20, 2025, upsized the company’s revolving credit commitments by $250 million, bringing the total to $750 million. InvestingPro data shows the company operates with a moderate debt level of $3.037 billion and maintains healthy liquidity with a current ratio of 1.47, indicating strong ability to meet short-term obligations. Additionally, the agreement introduced a reduction in the applicable margin of the interest rate for the Revolving Credit Facility and removed the credit spread adjustment applicable to it.

Under the new terms, the maturity date for the revolving credit has been extended to the fifth anniversary of the Amendment No. 8 Effective Date, with a stipulation that if the outstanding principal amount of term loans exceeds $500 million 91 days before their maturity date, the maturity of the revolving credit would be adjusted accordingly.

The amended credit facility offers APi Group the option to have loans bear interest at a base rate or a Term SOFR rate, plus an applicable margin which will be determined based on the company’s first lien net leverage ratio after the first fiscal quarter post-amendment.

In addition to the credit agreement amendment, APi Group announced a three-for-two stock split of its common stock, which will be executed through a dividend distribution. Shareholders on record as of June 16, 2025, will receive one additional half share for each share they own on June 30, 2025. The stock split will not apply to holders of the company’s Series A Preferred Stock, but after the split, the preferred stock will be convertible into 6,000,000 shares of common stock.

This move is expected to increase the liquidity of APi Group’s shares and make them more accessible to a broader range of investors. The company has stated that cash payments will be issued in lieu of any fractional shares resulting from the stock split. For deeper insights into APi Group’s financial health and growth prospects, investors can access comprehensive analysis and 16 additional ProTips through InvestingPro’s detailed research reports, which provide expert analysis on over 1,400 US stocks.

The details of the credit agreement amendment and the stock split were included in the exhibits filed with the 8-K form and are based on a press release statement.

In other recent news, APi Group Corporation announced impressive first-quarter results that surpassed analyst expectations for revenue, reporting $1.7 billion against the projected $1.66 billion, marking a 7.4% year-over-year increase. The company also raised its full-year 2025 revenue guidance to between $7.4 billion and $7.6 billion, higher than the previous forecast and above analyst expectations. Adjusted earnings per share were $0.37, matching analyst estimates. APi Group’s Safety Services segment experienced a significant revenue increase of 13.4% year-over-year, while its Specialty Services segment saw a 6.8% decline. The company has also authorized a new $1 billion share repurchase program. RBC Capital Markets and Truist Securities both raised their price targets for APi Group, with RBC setting it at $52 and Truist at $54, maintaining positive ratings on the stock. Both firms highlighted APi Group’s strategic initiatives and growth prospects, including its ambitious financial targets for 2028. APi Group aims for over $10 billion in revenues and a 16% adjusted EBITDA margin by 2028, with a focus on recurring revenue streams and strategic mergers and acquisitions.

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