GEO Group plans new credit facility for CentraCore purchase

By Sara Rosenberg

New York, Sept. 20 - The GEO Group Inc. plans on getting a new credit facility to help fund its acquisition of CentraCore Properties Trust, according to a market source.

BNP Paribas is the lead bank on the deal.

Under the terms of the definitive agreement, CentraCore shareholders will receive $32.00 cash per common share or $356.1 million, and GEO will refinance CentraCore's debt at closing, which is estimated to be $40 million.

GEO said that the acquisition financing will be comprised of $57 million in cash and $360 million in debt.

Closing of the acquisition, which is targeted for late 2006 or early 2007, is subject to the approval of CentraCore's shareholders and federal regulatory agencies, and other customary conditions, but it is not subject to financing contingencies.

GEO is a Boca Raton, Fla., provider of correctional and mental health services. CentraCore is a Palm Beach Gardens, Fla., correctional real estate investment trust.

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