Garda World Security to sell $125 million tap of 8¾% notes due 2025 in Thursday drive-by

By Paul A. Harris

Portland, Ore., March 1 – Garda World Security Corp. plans to price a $125 million add-on to its 8¾% senior notes due May 15, 2025 (Caa2/CCC+/B-) in a quick-to-market Thursday trade following a late-morning conference call with investors, according to market sources.

Initial guidance is in the 105.5 area, a trader said.

Barclays is the global coordinator and lead left bookrunner. Citigroup Global Markets Inc., Macquarie Capital, SG CIB and TD Securities are the joint bookrunners.

The deal is formatted as Rule 144A and Regulation S for life and is coming as a private placement in Canada.

The notes feature a make-whole call at Treasuries plus 50 basis points until May 15, 2020, then become callable at 106.563. They also feature a 40% equity clawback at 108.75 until May 15, 2020.

The Montreal-based cash logistics and security solutions provider plans to use the proceeds to fund the acquisition of Primary Response, to fund cash onto the balance sheet for other acquisitions (including the potential acquisition of a U.S. target) and for general corporate purposes.

The original $500 million issue priced at 99.278 to yield 8 7/8% on April 27, 2017.

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