TRG | The Bottom Line – 3-8

APi Group just completed its upsized secondary offering of 10.5 million shares priced at $34.25.  The transaction stemmed from all Series B Preferred Shares owned by Blackstone and Viking being converted into common, with APG acquiring about half of the shares after announcing a $1B share repurchase program. In addition to removing the convertible overhang and simplifying its capital structure, we like the company’s ability to generate cash and focus on strategic, high-margin service projects. APi has grown its higher margin service and inspection revenues from 20% in 2008, to 40% in 2020, to over 50% today. The Street seems to be grasping the story, too, as the stock continues its record climb. Shares are up ~15% YTD and ~70% over the past year. TRG will be hosting APi Group top management for an NDR in Boston, MA on Tuesday, April 4th.