Private equity-backed Apex Service Partners raises $3.9 billion in debut institutional debt financing

Apex Service Partners, its sponsor Alpine Investors and Apollo Hybrid Value have closed a $3.9 billion debut institutional debt financing for the Tampa-based residential HVAC, plumbing and electrical platform. J.P. Morgan was lead-left arranger, joint bookrunner, administrative agent and buyside financial advisor. The package is made up of a $2.0 billion term loan B, a $300 million delayed draw term loan B, a $600 million revolving credit facility and $1.0 billion of senior secured notes, on which J.P. Morgan was a joint bookrunner. J.P. Morgan also advised Apollo on its strategic minority investment in Apex, which was announced in May 2026.

The pieces.

$2.0 billion term loan B. An institutional term loan sold to loan investors such as CLOs and loan funds rather than held by a single lender. It carries a floating rate and minimal required amortization, so most of the principal is repaid at maturity. It is a first-lien loan maturing in October 2033, according to S&P Global Ratings.

$300 million delayed draw term loan B. Committed term loan capacity that Apex can draw later rather than at closing, typically to fund acquisitions as they come up. It also matures in October 2033.

$600 million revolving credit facility. A flexible line Apex can draw, repay and redraw for working capital and liquidity. It matures in 2031.

$1.0 billion senior secured notes. Bonds secured by the company's assets, fixed-rate and sold to bond investors. According to Latham & Watkins, which represented the initial purchasers, the notes priced at 8.875% and are due 2033. S&P Global Ratings rated the notes 'B-' and has assigned Apex a 'B-' issuer rating with a stable outlook.

Use of proceeds.

Per Latham & Watkins and S&P, the proceeds, together with newly raised equity, will refinance existing debt, buy out equity held by certain inactive minority and rollover investors, provide general corporate liquidity and fund future M&A. S&P expects the transactions to reduce Apex's leverage and annual interest expense. We expect most of the proceeds to refinance Apex's older private credit debt, which BDC filings show was spread across more than 20 direct lenders as of mid-2026.

What it means.

Apex has moved from private credit into the syndicated loan and high-yield bond markets. For a borrower of its size, that generally means cheaper pricing, looser terms and access to a much deeper pool of capital. Few residential home services companies are large enough to tap these markets, and this financing puts Apex in that group.

The delayed draw term loan and the revolver give Apex committed capacity for continued add-on acquisitions without needing to return to lenders for each deal. A lower cost of capital lets Apex keep paying competitive prices for HVAC, plumbing and electrical businesses, and it raises the bar for other buyers bidding against it for the same companies.