S&P rates GEO loans BB-, notes B

S&P said it preliminarily assigned BB- and 1 recovery ratings to the GEO Group Inc.’s new senior secured facilities and B and 3 recovery ratings to its new second-lien notes and second-lien private exchange notes. The 1 recovery rating indicates very high recovery (90%-100%; rounded estimate: 95%) in default. The 3 recovery rating indicates meaningful (50%-70%; rounded estimate: 60%) recovery in default.

On Wednesday, GEO reported it has the necessary consents to implement its proposed debt restructuring.

The agency said it expects GEO will exchange most of its obligations under its outstanding debt for longer-dated credit facilities, including a secured exchange revolver due 2027, two tranches of a secured exchange term loan maturing in 2027, a secured stub term loan maturing in 2024, new secured second-lien notes due 2028, and secured second-lien private exchange notes due 2028.

“Our existing issuer credit rating and issue-level ratings on GEO are unchanged. We expect to lower our issuer credit rating on the company to SD (Selective Default) and our issue-level ratings on its existing rated credit facilities to D when the transaction closes. Subsequently, we expect to raise our issuer credit rating on GEO to B,” S&P said in a press release.

© 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.