Garda World marketing $779 million offering of eight-year notes; initial talk low 9% area

By Paul A. Harris

Portland, Ore., Oct. 21 – Garda World Security Corp. is expected to sell $779 million of eight-year senior notes during the Oct. 21 week, according to market sources.

Initial guidance has the Rule 144A and Regulation S deal coming to yield in the low 9% area, a trader said.

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.

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