By Paul A. Harris
Portland, Ore., May 31 - Garda World Security Corp. announced in a Tuesday press release that it took advantage of good market conditions to place a C$50 million add-on to its 9¾% senior notes due March 15, 2017 (B2/B/).
The deal was priced at 106.50, resulting in an 8.08% yield to worst and an 8.3% yield to maturity, according to an informed source.
TD Securities Inc. ran the books. Desjardins Securities Inc., Macquarie Capital Markets Canada Ltd. and UBS Securities LLC were the co-lead managers.
The Montreal-based security services provider plans to use the proceeds to repay a portion of its term loan A.
"Garda is taking advantage of the excellent market position of our senior notes to secure this additional financing," Patrick Prince, the company's chief financial officer, stated in the press release.
"Our improved capital structure provides the flexibility we need to pursue opportunities to grow successfully. The reopening will increase Garda's long term capital and reduce its exposure to interest rate increases in an environment where rates are predicted to go up.
"We are pleased that we were able to take advantage of this offer for long-term capital. The attractive yield we secured, close to 200 bps lower than our previous notes, reflects the improved risk profile of the company," Prince said.
"Along with the repayment of the term loan, Garda obtained certain modifications to its credit facilities to allow the company more flexibility for growth and acquisitions."
The original C$75 million issue priced at 98.148 on March 8, 2010 to yield 10 1/8%. It came in a two-part deal that also included $250 million of the notes, which were priced with the same terms but in U.S. rather than Canadian dollars.
| Issuer: | Garda World Security Corp.
|
| Amount: | C$50 million
|
| Maturity: | March 15, 2017
|
| Security description: | Add-on to 9 ¾% senior notes due March 15, 2017
|
| Bookrunner: | TD Securities (USA) LLC
|
| Co-lead managers: | Desjardins Securities Inc., Macquarie Capital Markets Canada Ltd. and UBS Securities LLC
|
| Coupon: | 9¾%
|
| Price: | 106.50
|
| Yield to worst: | 8.08%
|
| Yield to maturity: | 8.3%
|
| Call features: | Make-whole call at Treasuries plus 50 bps until March 15, 2014, then callable at 104.875, 102.438, par on and after March 15, 2016
|
| Settlement date: | June 2 with accrued interest
|
| Ratings: | Moody's: B2
|
| Standard & Poor's: B
|
| Distribution: | Rule 144A/Regulation S for life
|
| Original issue: | C$75 million priced at 98.148 on March 8, 2010 to yield 10 1/8%
|
| Total issue size: | C$125 million
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
