By Paul A. Harris
Portland, Ore., Nov. 1 - Garda World Security Corp. priced a downsized $300 million issue of eight-year notes (B3/B-/) at par to yield 7¼% on Friday, according to a syndicate source.
The bond deal was downsized by the amount it had been upsized earlier in the week: $125 million. Garda also downsized its term loan by $25 million, the amount by which it upsized the bank deal earlier in the week.
As a result, the company canceled plans to pay a dividend, which it proposed to do with the upsize amounts.
The bond priced on top of price talk, according to a buyside source. They came tighter than the 7 3/8% to 7½% guidance that circulated earlier in the week.
BofA Merrill Lynch and RBC Capital Markets were the joint global coordinators and joint bookrunners for the bond deal.
BofA Merrill Lynch was the left bookrunner. RBC, TD Securities and Mizuho Securities were joint bookrunners.
The Montreal-based provider of business solutions and security services plans to use the proceeds to refinance existing credit facility debt and senior unsecured notes due 2017 and fund the acquisition of G4S Cash Solutions for C$110 million.
| Issuer: | Garda World Security Corp.
|
| Amount: | $300 million, downsized from $425 million
|
| Maturity: | Nov. 15, 2021
|
| Securities: | Senior notes
|
| Joint global coordinators: | BofA Merrill Lynch, RBC Capital Markets
|
| Left bookrunner: | BofA Merrill Lynch
|
| Joint bookrunners: | RBC, TD Securities, Mizuho
|
| Coupon: | 7¼%
|
| Price: | Par
|
| Yield: | 7¼%
|
| Spread: | 500 bps
|
| First call: | Callable Nov. 15, 2016 at 105.438
|
| Equity clawback: | 40% at 107.25 until Nov. 15, 2016
|
| Trade date: | Nov. 1
|
| Settlement date: | Nov. 8
|
| Ratings: | Moody's: B3
|
| Standard & Poor's: B-
|
| Distribution: | Rule 144A and Regulation S for life
|
| Price talk: | 7¼% (initial guidance was 7 3/8% to 7½%)
|
| Marketing: | Roadshow
|
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