Garda World Security shifts funds between U.S. and Canadian term loans

By Sara Rosenberg

New York, Nov. 6 - Garda World Security Corp. upsized its U.S. seven-year term loan B to $540 million from $525 million and downsized its Canadian seven-year term loan B to C$135 million from C$150 million, according to a market source.

The U.S. term B is priced at Libor plus 300 basis points and the Canadian B loan is priced at BA plus 375 bps.

Both term loans have a 1% floor, an original issue discount of 99½ and 101 soft call protection for one year.

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

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

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

Other funds for the transaction will come from $300 million of 7¼% notes.

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 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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