Garda ups U.S. term loan to $600 million, flexes to Libor plus 375 bps

By Sara Rosenberg

New York, Oct. 30 - Garda World Security Corp. increased its seven-year term loan B to $600 million from $525 million and lifted pricing to Libor plus 375 basis points from Libor plus 325 bps, according to a market source.

Also, pricing on the C$150 million seven-year term loan B was raised to BA plus 425 bps from BA plus 375 bps, the source said.

Furthermore, the 101 soft call protection on the two term loans was extended to one year from six months.

Both term loans still have a 1% floor and an original issue discount of 991/2.

The company's now roughly $900 million senior secured credit facility (Ba3/B+), up from $825 million, also includes a $150 million five-year revolver.

Other changes made to the credit facility include removing the MFN sunset provision, eliminating the $175 million dividend basket subject to liquidity of more than $75 million, reducing the general restricted payments basket to $10 million from $15 million and providing that the company will hold quarterly financial update calls for lenders.

Recommitments are due at 4 p.m. ET on Thursday, the source added.

RBC Capital Markets LLC, BofA Merrill Lynch, TD Securities (USA) LLC and Mizuho Securities USA Inc. are the lead banks on the deal.

In addition to the credit facility, the company is getting $425 million of notes, upsized from $300 million.

Proceeds will be used will be used to refinance existing credit facility debt and senior unsecured notes due 2017, fund the C$110 million acquisition of G4S Cash Solutions, and, as a result of the debt upsizings, to fund a dividend.

Closing on the acquisition is expected before the end of this year, subject to customary conditions including regulatory approvals.

Garda is a Montreal-based provider of business solutions and security services. G4S Cash is a provider of risk management and secure transit of valuables such as currency, diamonds, jewelry and more.

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