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MONTREAL, QUEBEC--(Marketwired - May 8, 2017) - Garda World Security Corporation (the "Company" or "GardaWorld") announced today that GW Honos Security Corporation (the "Escrow Issuer"), an affiliate of the Company, completed and closed into escrow its previously announced private offering (the "Offering") of US$500.0 million aggregate principal amount of 8.75% Senior Notes due 2025 (the "Notes"). 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 (the "Stock Purchase"). Upon the consummation of the Stock Purchase, the Escrow Issuer will amalgamate with the Company, the Company will assume the obligations of the Escrow Issuer 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. The Company 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. |
