S&P: Garda World unchanged

Standard & Poor's said the B debt rating on Garda World Security Corp.'s C$75 million of 9¾% senior notes due March 15, 2017 remains unchanged following the add-on of C$50 million to the issuance. The recovery rating is 5, indicating modest recovery (10%-30%) in the event of default.

The proposed notes will rank equally with and form part of a single series with the company's existing C$75 million of notes, which were issued under an indenture dated March 12, 2010, the agency said.

The company intends to use the net proceeds from the debt issuance to prepay a portion of its existing C$215 million senior secured term loan, of which about C$182 million was outstanding as of April 30.

The refinancing will not materially change the company's credit profile, and as such the ratings on the company remain unaffected, the agency said.

The ratings on Garda reflect the view of the company's highly leveraged financial risk profile characterized by relatively a weak adjusted debt-to-EBITDA ratio of about 5 times for the 12-months ended April 30, correspondingly weak cash flow protection measures and an acquisitive growth strategy.

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