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Garda talks $779 million eight-year senior notes to yield 9½%-9¾%; books close Thursday
By Paul A. Harris
Portland, Ore., Oct. 24 – Garda World Security Corp. talked its $779 million offering of eight-year senior notes (Caa2/CCC+) to yield 9½% to 9¾%, according to market sources.
Official talk comes wide of initial guidance in the low 9% area, a bond trader said.
Books close at 3:30 p.m. ET on Thursday.
BofA Securities Inc. is the left bookrunner. Barclays, J.P. Morgan Securities LLC, TD Securities, Jefferies LLC, RBC Capital Markets LLC, Scotia Capital and UBS Investment Bank are the joint bookrunners.
The Rule 144A and Regulation S for life notes become callable after three years at par plus 50% of the coupon and feature a three-year 40% equity clawback at par plus the coupon and a 101% poison put.
The notes are coming in connection with the purchase of a majority stake in the Montreal-based security services company by a consortium of investors consisting of investment funds advised by BC Partners Advisors LP and certain members of Garda World management, including founder, chairman and CEO Stephan Cretier, that is indirectly owned by certain investment funds affiliated with Rhone Capital, LLC.
Proceeds from the notes, together with new senior secured credit facilities and proceeds from certain equity contributions, will be used to fund the acquisition, to refinance existing credit facilities, to fund a tender offer for the company's dollar-denominated 8¾% senior notes due 2025 and to repay its dollar-denominated 7¼% senior notes due 2021.
The issuing entity will be GW B-CR Security Corp., which is to be amalgamated with and into Garda World Security.
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