By Paul A. Harris
Portland, Ore., Jan. 23 – Garda World Security Corp. priced an upsized $400 million issue of five-year senior secured notes (B2/B) at par to yield 7¾% on Monday, according to market sources.
The issue size increased from $350 million.
The yield printed at the tight end of the 7¾% to 8% yield talk. Initial guidance was in the low-8% area.
Timing was accelerated. When the deal was announced on Monday morning it was expected to remain in the market until Tuesday.
BofA Securities was the left bookrunner. Joint bookrunners were Barclays, JPMorgan, UBS, TD, RBC, Jefferies, Scotia and BC Partners.
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.
| Issuer: | Garda World Security Corp.
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| Amount: | $400 million, increased from $350 million
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| Issue: | Senior secured notes
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| Maturity: | Feb. 15, 2028
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| Left bookrunner: | BofA Securities
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| Joint bookrunners: | Barclays, JPMorgan, UBS, TD, RBC, Jefferies, Scotia and BC Partners
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| Coupon: | 7¾%
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| Price: | Par
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| Yield: | 7¾%
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| Spread: | 412 bps
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| First call: | Feb. 15, 2025 at 103.875
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| Trade date: | Jan. 23
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| Settlement date: | Jan. 30
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| Ratings: | Moody's: B2
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| S&P: B
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| Distribution: | Rule 144A and Regulation S for life
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| Price talk: | 7¾% to 8%
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| Marketing: | Drive-by
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