Published on 5/17/2021 in the Prospect News Canadian Bonds Daily and Prospect News High Yield Daily.
New Issue: Garda prices $500 million eight-year notes at par to yield 6%
By Paul A. Harris
Portland, Ore., May 17 – Garda World Security Corp. priced a $500 million issue of eight-year senior notes (Caa2/CCC+) at par to yield 6% in a Monday drive-by, according to market sources.
The yield printed at the tight end of yield talk in the 6% area. Initial guidance was in the low 6% area.
BofA was at the left of a syndicate of bookrunners that also included Barclays, JPMorgan, UBS, TD, RBC, Scotia and Apollo.
The Montreal-based security firm plans to use the proceeds to redeem all $174.6 million of its outstanding 8¾% senior notes due 2025 and for general corporate purposes, which may include acquisitions. Pending those uses proceeds may be used to pay down the company’s revolving credit facility.
| Issuer: | Garda World Security Corp.
|
| Amount: | $500 million
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| Maturity: | June 1, 2029
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| Securities: | Senior notes
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| Bookrunners: | BofA, Barclays, JPMorgan, UBS, TD, RBC, Scotia and Apollo
|
| Coupon: | 6%
|
| Price: | Par
|
| Yield: | 6%
|
| Spread: | 458 bps
|
| Call protection: | Three years
|
| Trade date: | May 17
|
| Settlement date: | June 1
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| Ratings: | Moody's: Caa2
|
| S&P: CCC+
|
| Distribution: | Rule 144 and Regulation S for life
|
| Price talk: | 6 1/8% area
|
| Marketing: | Drive-by
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