Garda World Security to price $350 million five-year notes Tuesday; initial talk low-8% area

By Paul A. Harris

Portland, Ore., Jan. 23 – Garda World Security Corp. plans to price a $350 million offering of five-year senior secured notes on Tuesday, according to market sources.

The deal, which was set to kick off on a Monday morning conference call with investors, is in the market with initial guidance in the low-8% area, according to a sellside source.

BofA is the left bookrunner. Barclays, JPMorgan, UBS, TD, RBC, Jefferies, Scotia and BC Partners are the joint bookrunners.

The Rule 144A and Regulation S for life notes become callable after two years at par plus 50% of the coupon. They feature a 40% equity clawback at par plus the full coupon during the non-call period and have a 101% poison put.

The Montreal-based private security firm plans to use the proceeds for general corporate purposes, which may include future acquisitions. Pending that application, the proceeds may be used to repay outstanding amounts on the company’s senior secured revolver.

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