Garda World Security Corporation
TSX : GW

Garda World Security Corporation

March 30, 2006 13:00 ET

GARDA COMPLETES $105 MILLION BOUGHT DEAL PRIVATE PLACEMENT, ISSUES 4.5 MILLION SPECIAL WARRANTS

MONTREAL, QUEBEC--(CCNMatthews - March 30, 2006) -

This news release is not for distribution to United States newswire services or for dissemination in the United States.

Garda World Security Corporation (TSX:GW) ("Garda") is pleased to advise that it has closed its bought deal private placement, announced on March 16, 2006, of four million special warrants and, following the exercise of an underwriters' option, an additional 500,000 special warrants, all at a price of $23.40 per special warrant, for gross proceeds to Garda of $105.3 million. Each special warrant entitles the holder thereof to acquire one Class "A" share of Garda for no additional consideration. The placement was made through a syndicate of underwriters (GMP Securities L.P., BMO Nesbitt Burns Inc. and Desjardins Securities Inc.).

Garda will use the net proceeds from the private placement to repay all of its outstanding debt related to the acquisition of Rentokil Initial Canada Limited, to undertake further business development and expansion, and for working capital purposes.

Garda has undertaken to file a short form prospectus in order to qualify the distribution of the Class "A" shares issuable upon the exercise of the 4.5 million special warrants. There are currently 25,984,929 Class A shares of Garda issued and outstanding.

As first announced, two shareholders of Garda granted an underwriters' option to acquire a maximum of one million additional special warrants from the shareholders at closing, at the offering price of $23.40. The terms of the private placement were subsequently revised so that the two shareholders were not party to the private placement.

About Garda

Garda, known for its complete solutions approach, is a well-established leading provider of physical security, cash handling, consulting and investigations and pre-employment screening services in North America. The company employs over 19,000 people and is headquartered in Montreal, with offices from coast-to-coast in Canada, as well as in the United States, Mexico and Europe.

Recognized for its competence in addressing the most complex security issues, Garda has built a solid reputation among companies in both traditional and new-economy industries. Garda plays an active role in the consolidation of the security market. Through a series of strategic acquisitions and strong internal growth, Garda is recognized as one of the fastest growing companies in North America. With its unique competitive position, Garda is set to take full advantage of its positive growth for its customers and shareholders alike. Garda is also the sole shareholder of Keyfacts, Vance International, United Armored Services, Chartrand Laframboise Inc. and Signum Corporate Services Inc. For more information, visit www.gardaglobal.com.

FORWARD-LOOKING INFORMATION -- This press release contains forward-looking statements reflecting Garda objectives, estimates, expectations and the impact of acquisitions on Garda's financial performance. These statements are identified by the use of verbs such as "believe", "anticipate", "estimate", and "expect" as well as by the use of future or conditional tenses. By their very nature, these types of statements involve risks and uncertainty. Consequently, reality may differ materially from Garda's projections or expectations.

This news release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act"), or any state securities laws and may not be offered or sold within the United States or to United States Persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.

Contact Information

  • Garda
    Nathalie de Champlain
    Vice President, Communications
    (514) 281-2811 ext. 2800 / (800) 859-1599 ext. 2800
    Cell: (514) 830-2800
    or
    Morin Public Relations
    Laird Greenshields
    (514) 289-8688
    Cell: (514) 712-3252