GEO Group enters private exchange agreements with certain note holders (NYSE:GEO)
Press Room
The GEO Group (NYSE:GEO) Friday announced that it has entered into private exchange agreements with certain holders of GEO Corrections Holdings’s 6.50% Exchangeable Senior Notes due 2026.
The Noteholders have agreed to exchange $177 million in aggregate principal amount of the outstanding 6.50% Exchangeable Senior Notes for a current estimated valuation of $305 million.
The consideration will consist of cash and shares of GEO’s common stock issued at closing.
GEO expects to fund the cash portion of the exchanges, which totals $177 million, with the net proceeds from its previously announced offering of senior secured notes due 2029 and senior unsecured notes due 2031 or, if necessary, cash on hand.
The 6.50% Exchangeable Senior Notes to be exchanged represent approximately 77% of the outstanding principal amount, with $53 million in aggregate principal amount remaining outstanding following the exchange.
