By Paul A. Harris
Portland, Ore., March 1 – Garda World Security Corp. priced a $125 million add-on to its 8¾% senior notes due May 15, 2025 (Caa2/CCC+/B-) at 105.25 in a quick-to-market Thursday trade, according to market sources.
The yield to worst is 7.506%. The yield to maturity is 7.78%.
The reoffer price came at the cheap end of the 105.25 to 105.75 price talk. The yield to worst came at the wide end of the 7.392% to 7.506% yield talk.
Initial guidance was in the 105.5 area.
Barclays was the global coordinator and lead left bookrunner. Citigroup Global Markets Inc., Macquarie Capital, SG CIB and TD Securities were the joint bookrunners.
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.
| Issuer: | Garda World Security Corp.
|
| Amount: | $125 million
|
| Maturity: | May 15, 2025
|
| Security description: | Add-on to 8¾% senior notes due May 15, 2025
|
| Global coordinator: | Barclays
|
| Bookrunners: | Barclays (lead left), Citigroup Global Markets Inc., Macquarie Capital, SG CIB and TD Securities
|
| Coupon: | 8¾%
|
| Price: | 105.25
|
| Yield to maturity: | 7.78%
|
| Yield to worst: | 7.506%
|
| Spread: | 470 bps
|
| Call: | Make-whole call at Treasuries plus 50 bps until May 15, 2020, then callable at 106.563
|
| Equity clawback: | 40% at 108.75 until May 15, 2020
|
| Trade date: | March 1
|
| Settlement date: | March 5
|
| Ratings: | Moody's: Caa2
|
| S&P: CCC+
|
| Fitch: B-
|
| Distribution: | Rule 144A and Regulation S for life, private placement in Canada
|
| Price talk: | 105.25 to 105.75
|
| Yield talk: | 7.392% to 7.506%
|
| Marketing: | Quick to market
|
| Original issue: | $500 million issue priced at 99.278 to yield 8 7/8% on April 27, 2017
|
| Total issue size: | $625 million
|
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