S&P: GEO unchanged

Standard & Poor's said that there will be no immediate effect on the rating or outlook of The GEO Group Inc. (BB-/stable) following the company's recent announcement that it has agreed to acquire CentraCore Properties Trust.

The agency said that GEO Group will purchase the correctional and detention facility REIT for about $360 million and the assumption of $40 million of debt.

Although GEO Group plans to finance the transaction using cash on hand and about $360 million in debt, specific financing details have not yet been disclosed, S&P said, adding it believes that the incremental debt will be partly offset by savings in rent expense and incremental income from the two facilities not currently leased by GEO.

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