The GEO Group, Inc. has recently announced the amendment of its credit agreement, resulting in an increase in its revolving credit facility (the “Revolver”) commitments from $310 million to $450 million. Additionally, the maturity of the Revolver has been extended to July 14, 2030. As of today, revolving credit loans accrue interest at a SOFR based rate, with an interest rate that is lower by 0.50% from the applicable rate prior to the amendment.
Prior to the closing of the amendment, GEO repaid $132 million of the outstanding term loan B under the credit agreement. Furthermore, the company expects to use the net proceeds from the sale of the GEO-owned Lawton Correctional Facility in Oklahoma, which is anticipated to close on July 25, 2025, to pay off additional senior secured debt, thereby reducing the company's total net debt to approximately $1.47 billion.
George C. Zoley, Executive Chairman of GEO, expressed satisfaction with the amendment, highlighting its significance in positioning the company to consider potential future capital returns and support future financial needs. The amendment also signifies the growing support GEO is receiving from its existing and new banking partners.
Following these developments, the company's management team and board of directors remain focused on the disciplined allocation of capital to enhance long-term value for shareholders.
The GEO Group, Inc. is a leading diversified government service provider, operating in the United States, Australia, South Africa, and the United Kingdom. Its services include in-custody rehabilitation, post-release support, secure transportation, electronic monitoring, community-based programs, and correctional health and mental health care. GEO's operations encompass the ownership and/or delivery of support services for 98 facilities, totaling approximately 77,000 beds, with a workforce of up to approximately 19,000 employees. The market has reacted to these announcements by moving the company's shares -1.14% to a price of $25.22. For the full picture, make sure to review GEO GROUP INC's 8-K report.
