Garda World Security Corporation
TSX : GW

Garda World Security Corporation

March 12, 2010 10:33 ET

Garda Completes Successful Refinancing

MONTREAL, QUEBEC, CANADA--(Marketwire - March 12, 2010) - Garda World Security Corporation (TSX:GW) (Garda) announced today it has successfully refinanced its existing debt with a combination of new bank loans and long term unsecured financing. As a result, Garda expects to save approximately C$15 million in financing expenses during the first 12 months.

The new capital structure will consist in a bank three year term loan of C$340 million comprising a C$125 million revolving credit facility and C$215 million term loan, and the issuance of 9.75% long term unsecured financing of US$250 million and C$75 million due 2017. Net proceeds will be used to repay all bank facilities as well as the termination of all the interest rate swap agreements.

"Members of our leadership team are now focused on executing their strategies and business plans, optimizing cost efficiencies and growing their operational platforms," says President and CEO Stephan Cretier. "We have certainly shown resiliency over the past year. With this enhanced capital structure, Garda is now well positioned to focus on growth opportunities in all the markets we serve."

"With this long term capital structure and more attractive financing conditions, we now have the capital availability to enhance Garda's financial position and manage our debt optimally," notes Garda Chief Financial Officer Patrick Prince. "Our business units enjoy predictable revenue streams and attractive cash flows from operations and we have the flexible cost and capital structure to maximize our opportunities for growth and to rapidly repay our debt. We are pleased that our financial partners and investors share our vision for Garda and actively worked with us on this successful refinancing."

Deloitte's Capital Advisory Group acted as financial advisors to Garda.

This press release does not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of any of the securities in any jurisdiction in which such an offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction. The securities mentioned herein have not been and will not be qualified for sale to the public under applicable Canadian securities laws and, accordingly, any offer and sale of securities in Canada will be made on a basis which is exempt from the prospectus and dealer registration requirements of such securities laws. 

CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS

Certain statements in this press release may constitute forward-looking information within the meaning of securities laws. Forward-looking information may relate to Garda's future outlook and anticipated events, business, operations, financial performance, financial condition or results and, in some cases, can be identified by terminology such as "may"; "will"; "should"; "expect"; "plan"; "anticipate"; "believe"; "intend"; "estimate"; "predict"; "potential"; "continue"; "foresee", "ensure" or other similar expressions concerning matters that are not historical facts. In particular, statements regarding the company's future operating results and economic performance and its objectives and strategies are forward-looking statements. These statements are based on certain factors and assumptions including expected growth, results of operations, performance and business prospects and opportunities, which Garda believes are reasonable as of the current date. While management considers these assumptions to be reasonable based on information currently available to the company, they may prove to be incorrect. The company cautions the reader that the current economic conditions make forward-looking information and the underlying assumptions subject to greater uncertainty and that, consequently, they may not materialize, or the results may significantly differ from the company's expectations. It is impossible for Garda to predict with certainty the impact that the current economic may have on future results. Forward-looking information is also subject to certain factors, including risks and uncertainties that could cause actual results to differ materially from what Garda currently expects. These factors include technological changes, changes in market and competition, governmental or regulatory developments, general economic conditions, the development of new services, the enhancement of existing services, and the introduction of competing products having technological or other advantages, many of which are beyond the company's control. Therefore, future events and results may vary significantly from what management currently foresees. The reader should not place undue importance on forward-looking information and should not rely upon this information as of any other date. While management may elect to, the company is under no obligation (and expressly disclaims any such obligation), and does not undertake to update or alter this information before the next quarter.

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