Stephan Cretier, Rhône Capital close Apax buyout, Garda to refinance debt

Ted Liu

Updated on:

Garda World Security Corporation announced today that in connection with the completion of the previously announced purchase the shares in its parent company held by Apax Partners LLP, GardaWorld intends to refinance its existing indebtedness outstanding under its senior secured credit facilities and its U.S. dollar denominated senior unsecured notes due 2021.

On March 24, 2107, Garda founder Stephan Crétier, along with certain members of management and an entity held by investment funds affiliated with Rhône Capital, entered into a conditional purchase agreement to acquire all of Apax’s remaining shares of the parent company of GardaWorld. The transaction was slated to close during the quarter ending July 31, 2017.

GardaWorld expects to refinance its existing Indebtedness with a portion of the proceeds of financing transactions, consisting of 1) CDN $71 million in equity contributions, 2) new senior secured credit facilities consisting of a) a US $240 million senior secured revolving credit facility, available for borrowings in either U.S. dollars or Canadian dollars; and b) US $980 million senior secured term loan B facilities consisting of loans in U.S. dollars and Canadian dollars, and 3) US $630 million aggregate principal amount of new senior unsecured notes.

At the closing of the senior secured credit facilities, GardaWorld expects the revolving credit facility will be undrawn and each of the term loan facilities will be fully drawn.

GardaWorld also intends to use a portion of the net proceeds from the financing transactions to fund the stock purchase and to pay certain fees and expenses.

photo credit: Garda