GEO Group increases revolver by $85 million

By Sara Rosenberg

New York, Oct. 29 - GEO Group Inc. exercised the accordion feature under its existing senior credit facility to add $85 million in additional revolver borrowing capacity, according to a news release.

After giving effect to the upsizing, the company has total borrowing capacity under the revolver of $235 million.

The additional capacity will be used to support the company's previously announced committed capital projects.

BNP Paribas acted as the lead arranger, bookrunner and administrative agent for the increase, and Bank of America acted as the syndication agent.

Pricing on the revolver remained at Libor plus 200 basis points and pricing on the company's term loan B remained at Libor plus 150 bps.

GEO is paying a one-time up front fee of 200 bps on the increased borrowing capacity, which will be amortized over the remaining term of the revolver.

The revolver is scheduled to expire on Sept. 14, 2010.

Under the accordion feature, the company can add up to $65 million in additional borrowing capacity by year-end 2008, and an additional $150 million in capacity can be added beginning on Jan. 1, 2009.

Any additional exercise of the accordion feature is subject to lender demand and market conditions.

"We are very pleased with the execution of this increase to our revolving credit facility. We have added sufficient additional borrowing capacity through our existing banking relationships to support our current committed capital projects while maintaining sufficient liquidity and the competitive interest rate spreads we had in place for our term loan and revolving credit facility," said George C. Zoley, chairman and chief executive officer, in the release.

GEO is a Boca Raton, Fla.-based provider of government-outsourced services in the management of correctional, detention, and mental health and residential treatment facilities.

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