GEO Group lowers pricing on revolver and term A to Libor plus 250 bps

By Sara Rosenberg

New York, July 27 - GEO Group Inc. reduced pricing on its $400 million five-year revolver and $150 million five-year delayed-draw term loan A to Libor plus 250 basis points from Libor plus 275 bps, according to a market source.

Pricing on the company's $200 million six-year term loan B was left unchanged at Libor plus 325 bps with a 1.5% Libor floor and an original issue discount of 99, the source said.

Upfront fees on the revolver and the term loan A range from 37.5 bps to 62.5 bps based on commitment size.

BNP Paribas is the lead bank on the $750 million credit facility (Ba3/BB+).

Proceeds will be used to refinance existing debt and to help fund the acquisition of Cornell Cos. Inc. at an estimated enterprise value of $685 million, including the assumption of $300 million of Cornell debt and excluding cash.

Cornell stockholders can choose to receive GEO common stock or cash. In order to preserve the tax-deferred treatment of the transaction, no more than 20% of the outstanding shares of Cornell common stock may be exchanged for cash.

The merger is expected to close in the third quarter.

Boca Raton, Fla.-based GEO Group and Houston-based Cornell are prison operators.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.