Moody's gives Garda notes B1

Moody's Investors Service said it assigned a B1 rating to Garda World Security Corp.'s proposed $400 million senior secured notes due in 2027. The B3 corporate family rating, B3-PD probability of default rating, B1 ratings on Garda World's senior secured revolver and senior secured term loan and the Caa2 rating to the senior unsecured notes remain unchanged. The outlook remains stable.

The proceeds will be used to repay a portion of the outstanding amount under the senior secured term loan. The transaction is a debt-for-debt transaction and will not affect the overall leverage for Garda World, the agency said.

The B1 ratings on the senior secured notes, revolver and term loan are two notches above the corporate family rating due to the senior debt's first priority access to substantially all of the company's assets as well as the loss-absorption cushion provided by the senior unsecured notes. The Caa2 rating on the senior unsecured notes is two notches below the corporate family rating due to the senior unsecured notes' junior position in the debt capital structure.

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