By Paul A. Harris
Portland, Ore., Oct. 24 – Garda World Security Corp. priced a $779 million issue of eight-year senior notes (Caa2/CCC+) at par to yield 9½% on Thursday, according to market sources.
The yield printed at the tight end of the 9½% to 9¾% yield talk, although wide of initial guidance in the low 9% area, sources said.
The additional yield generated an interest among the accounts, according to an investor, who said that there were heard to be around $1 billion of orders in the book on Thursday morning.
BofA Securities Inc. was the left bookrunner. Joint bookrunners were Barclays, J.P. Morgan Securities LLC, TD Securities, Jefferies LLC, RBC Capital Markets LLC, Scotia Capital and UBS.
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.
The issuing entity is GW B-CR Security Corp.
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.
| Issuer: | GW B-CR Security Corp.
|
| Amount: | $779 million
|
| Maturity: | Nov. 1, 2027
|
| Securities: | Senior notes
|
| Left bookrunner: | BofA Securities Inc.
|
| Joint bookrunners: | Barclays, J.P. Morgan Securities LLC, TD Securities, Jefferies LLC, RBC Capital Markets LLC, Scotia Capital and UBS
|
| Coupon: | 9½%
|
| Price: | Par
|
| Yield: | 9½%
|
| First call: | Nov. 1, 2022 at 104.75
|
| Equity clawback: | 40% at 109.5 until Nov. 1, 2022
|
| Trade date: | Oct. 24
|
| Settlement date: | Oct. 30
|
| Ratings: | Moody's: Caa2
|
| S&P: CCC+
|
| Distribution: | Rule 144A and Regulation S for life
|
| Price talk: | 9½% to 9¾%
|
| Marketing: | Roadshow
|
© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere.
For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.
