The GEO Group Completes $84 Million Asset Sale and Repays Remaining $147 Million in Term Loans Due In 2024
21 Setembro 2022 - 7:00AM
Business Wire
GEO’s Outstanding Debt Maturities Due Prior
to 2026 Reduced from $2 Billion to $23 Million
The GEO Group, Inc. (NYSE: GEO) (“GEO” or the “Company”)
announced today that it completed the sale of its equity investment
interest in the government-owned Ravenhall Correctional Centre in
Australia for approximately $84.4 million in gross proceeds,
pre-tax. GEO will use the proceeds, along with available cash on
hand, to repay all of the remaining $146.9 million outstanding
principal of its Term Loan B and its Tranche 3 Term Loan, both due
March 23, 2024 (the “2024 Term Loans”).
As previously announced, GEO had also delivered a notice of
redemption for the remaining $125.7 million outstanding aggregate
principal of its 5.125% Senior Notes due April 1, 2023 (CUSIP No.
36159RAG8) (the “2023 Senior Notes”), which will occur on October
6, 2022, and for which the Indenture has already been discharged.
Combined with the repayment of the 2024 Term Loans, GEO will have
discharged or fully repaid $272.7 million of recourse debt since
closing on its transactions to comprehensively address the
substantial majority of GEO’s outstanding debt on August 19,
2022.
George C. Zoley, Executive Chairman of GEO, said, “We are
pleased to have completed the sale of our equity investment
interest in the Ravenhall Correctional Centre in Australia, which
brings the total proceeds raised from asset and business sales over
the last two years to our articulated goal of approximately $150
million. With the repayment of our 2024 Term Loans, the redemption
of our 2023 Senior Notes, and our comprehensive transactions to
stagger our remaining debt maturities over a longer period of time,
we have now been able to reduce our outstanding debt maturing prior
to 2026 to approximately $23 million, from $2 billion. These
important steps have allowed us to make substantial progress
towards our goal of reducing our net leverage to below 3.5 times
Adjusted EBITDA by the end of 2023 and to below 3 times Adjusted
EBITDA by the end of 2024. We remain optimistic that these efforts
have the potential to unlock additional equity value for our
shareholders.”
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 102 facilities totaling
approximately 82,000 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
following cautionary statements. 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, including our
ability to redeem the 2023 Senior Notes on October 6, 2022, repay
the 2024 Term Loans, and decrease net leverage at the anticipated
rate over the next two years. 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 its Registration Statement on Form S-4 (Reg. No.
333-266208), as amended, its Form 10-K, 10-Q and 8-K reports. GEO
disclaims any obligation to update or revise any forward-looking
statements.
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version on businesswire.com: https://www.businesswire.com/news/home/20220920006265/en/
Pablo E. Paez 1-866-301-4436 Executive Vice President, Corporate
Relations
Geo (NYSE:GEO)
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