GardaWorld completes US $500M recap debt offering

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By CPE News

Montreal (pcJ News Briefs) – Garda World Security Corporation through GW Honos Security Corporation has completed and closed into escrow its previously announced private offering of US $500.0 million aggregate principal amount of 8.75% Senior Notes due 2025.

The offering is part of the financing of the previously announced stock purchase agreement entered into on March 23, 2017 by an entity held by affiliates of Rhone Capital L.L.C., Stéphan Crétier and an affiliate of Apax Partners LLP pursuant to which the 29.4% equity interest in the GardaWorld business currently owned by an affiliate of Apax Partners LLP will be purchased for cash consideration.

Upon the consummation of the stock purchase, GW Honos Security Corporation will amalgamate with GardaWorld, GardaWorld will assume the obligations under the notes and the related indenture and the notes will be guaranteed by each of the company’s existing and future subsidiaries that guarantee the company’s new senior secured credit facilities.

GardaWorld intends to use the net proceeds from the offering, together with borrowings under its new senior secured credit facilities and the proceeds from certain equity contributions, to (i) fund the stock purchase, (ii) fund the previously announced cash tender offers for any and all of its 7.25% U.S. dollar denominated senior notes due 2021, (iii) refinance its existing credit facilities and (iv) pay related fees and expenses.

GardaWorld is one of the world’s largest privately owned security services providers, offering a range of highly focused business solutions including cash services, protective services and aviation services. GardaWorld’s more than 62,000 highly trained, dedicated professionals serve clients throughout North America, the Middle East, Africa and Europe. GardaWorld works across a broad range of sectors, including financial services, infrastructure, natural resources and retail and services Fortune 500 companies, governments and humanitarian relief organizations.

photo credit: GardaWorld