GEO Group lifts term B to $800 million, flexes to Libor plus 225 bps

By Sara Rosenberg

New York, March 13 – GEO Group Inc. upsized its seven-year term loan B to $800 million from $700 million and reduced pricing to Libor plus 225 basis points from talk of Libor plus 250 bps to 275 bps, according to a market source.

As before, the term loan has a 0.75% Libor floor, an original issue discount of 99.5 and 101 soft call protection for six months.

Covenants include maximum total leverage, maximum secured leverage and minimum interest coverage ratios.

BNP Paribas Securities Corp. is the lead on the deal.

Recommitments were scheduled to be due at 5 p.m. ET on Monday, the source added.

Proceeds will be used to repay an existing term loan B and to fund the acquisition of Community Education Centers for $360 million in an all-cash transaction, excluding transaction related expenses, and funds from the upsizing will be used for general corporate purposes.

Closing on the acquisition is expected in the second quarter, subject to customary conditions.

GEO is a Boca Raton, Fla.-based real estate investment trust specializing in the design, financing, development, and operation of correctional, detention and community reentry facilities. Community Education Centers is a West Caldwell, N.J.-based provider of rehabilitative services for offenders in reentry and in-prison treatment facilities as well as management services for correctional and detention facilities.

© 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.