Sunday, 14 April 2024


The GEO Group plans $1.2 billion senior notes offering By

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BOCA RATON, Fla. – The GEO Group, Inc. (NYSE: GEO), a diversified government services provider, announced on Monday its intention to issue $1.2 billion in senior notes as part of a private offering.

The proposed issuance consists of $700 million in senior secured notes due in 2029 and $500 million in senior unsecured notes due in 2031. This offering aims to refinance approximately $1.5 billion of the company’s existing debt.

The proceeds from the offering, along with a new $400 million Term Loan B and available cash, will be used to refinance existing obligations. These include the repurchase, redemption, or discharge of the company’s existing Tranche 1 and Tranche 2 Term Loans, as well as its 9.50%, 10.50%, and 6.00% senior notes due in 2026. Part of the funds will also cover transaction fees and expenses, and support general corporate purposes.

The company clarified that the offering of the notes is not contingent on the repurchase or redemption of the existing term loans or notes. However, the repurchase, redemption, or discharge of the existing debt is conditional upon the successful completion of this offering and certain other financing transactions.

The notes will be available in the United States to qualified institutional buyers in accordance with Rule 144A under the Securities Act, and to non-U.S. persons outside the United States under Regulation S. The notes have not been registered under the Securities Act or any state securities laws and, therefore, cannot be offered or sold in the United States absent registration or an exemption from registration requirements.

The GEO Group operates secure facilities, processing centers, and community reentry centers in the United States, Australia, South Africa, and the United Kingdom. It provides a range of services, including rehabilitation, post-release support, secure transportation, electronic monitoring, and health care services.

The company’s forward-looking statements regarding the note issuance and the use of proceeds are subject to market conditions and other risks. The GEO Group has cautioned that these statements are forward-looking and that actual results could materially differ from those projected. This announcement is based on a press release statement from The GEO Group, Inc.

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