Garda driving by with $500 million eight-year notes, initial talk low 6% area

By Paul A. Harris

Portland, Ore., May 17 – Garda World Security Corp. plans to price a $500 million offering of eight-year senior notes in a Monday drive-by trailing a conference call with investors, according to market sources.

Initial guidance has the notes coming to yield in the low 6% area.

BofA Securities Inc., Barclays, J.P. Morgan Securities LLC, UBS Securities LLC, TD Securities (USA) LLC, RBC Capital Markets Corp., Scotia Capital (USA) Inc. and Apollo 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.

The Montreal-based security firm plans to use the proceeds to redeem all $174.6 million of its outstanding 8¾% senior notes due 2025, and for general corporate purposes which may include acquisitions. Pending those uses proceeds may be used to pay down the company’s revolver.

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