The GEO Group Amends Senior Revolving Credit Facility
December 14 2023 - 3:15PM
Business Wire
The GEO Group (NYSE: GEO) (“GEO” or the “Company”)
announced today the closing of a Refinancing Revolving Credit
Commitments Amendment ("Amendment") to its Credit Agreement dated
as of August 19, 2022, providing for the refinancing of all of
GEO's outstanding revolving credit facility commitments. The
Amendment provides for approximately $265 million in refinancing
revolving credit commitments maturing on March 23, 2027. Prior to
the Amendment, a portion of the Company's revolving credit
commitments matured on May 17, 2024, and the balance of the
Company's revolving credit commitments matured on March 23, 2027.
The Amendment further provides that interest will accrue on
outstanding revolving credit loans at a rate determined with
reference to the Company's total leverage ratio. As of today,
revolving credit loans accruing interest at a SOFR based rate would
accrue interest at the term SOFR reference rate for the applicable
interest period plus 3.00% per annum. All other terms governing the
refinancing revolving credit commitments remain substantially
consistent with those governing the revolving credit commitments
being refinanced. GEO currently has no outstanding borrowings under
its revolving credit facility, as amended.
George C. Zoley, Executive Chairman of GEO, said, “We are
pleased with this recent refinancing transaction and the support
for our Company’s future capital needs. This is an important step
to continue achieving our long-term strategy to reduce debt and
refinance our credit arrangements.”
About The GEO Group
The GEO Group, Inc. (NYSE: GEO) is a leading diversified
government service provider, specializing in design, financing,
development, and support services for secure facilities, processing
centers, and community reentry centers in the United States,
Australia, South Africa, and the United Kingdom. GEO’s diversified
services include enhanced in-custody rehabilitation and
post-release support through the award-winning GEO Continuum of
Care®, secure transportation, electronic monitoring,
community-based programs, and correctional health and mental health
care. GEO’s worldwide operations include the ownership and/or
delivery of support services for 100 facilities totaling
approximately 81,000 beds, including idle facilities and projects
under development, with a workforce of up to approximately 18,000
employees.
Use of forward-looking statements
This news release may contain “forward-looking statements”
within the meaning of Section 21E of the Securities Exchange Act of
1934, as amended, and the U.S. Private Securities Litigation Reform
Act of 1995. Readers are cautioned not to place undue reliance on
these forward-looking statements and any such forward-looking
statements are qualified in their entirety by reference to the
cautionary statements and risk factors contained in GEO's filings
with the U.S. Securities and Exchange Commission, including its
Form 10-K for the year ended December 31, 2022, its Form 10-Qs for
the quarters ended March 31, 2023, June 30, 2023 and September 30,
2023, and its Form 8-K reports. All forward-looking statements
speak only as of the date of this news release and are based on
current expectations and involve a number of assumptions, risks and
uncertainties that could cause the actual results to differ
materially from such forward-looking statements. Readers are
strongly encouraged to read the full cautionary statements and risk
factors contained in GEO’s filings with the U.S. Securities and
Exchange Commission, including those referenced above. GEO
disclaims any obligation to update or revise any forward-looking
statements, except as required by law.
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Pablo E. Paez 1-866-301-4436 Executive Vice President, Corporate
Relations
Geo (NYSE:GEO)
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