GEO Group repays $146.9 million of term loan borrowings

By Sara Rosenberg

New York, Sept. 21 – GEO Group Inc. repaid in full the $146.9 million outstanding principal of its term loan B and tranche 3 term loan, both due March 23, 2024, according to a news release.

Funds for the repayment came from the sale of the company’s equity investment interest in the government-owned Ravenhall Correctional Centre in Australia for about $84.4 million in gross proceeds, pre-tax, and cash on hand.

The company will also redeem the remaining $125.7 million outstanding aggregate principal of its 5 1/8% senior notes due April 1, 2023 on Oct. 6.

“With the repayment of our 2024 term loans, the redemption of our 2023 senior notes, and our comprehensive transactions to stagger our remaining debt maturities over a longer period of time, we have now been able to reduce our outstanding debt maturing prior to 2026 to approximately $23 million, from $2 billion. These important steps have allowed us to make substantial progress towards our goal of reducing our net leverage to below 3.5x adjusted EBITDA by the end of 2023 and to below 3x adjusted EBITDA by the end of 2024,” said George C. Zoley, executive chairman of GEO, in the release.

GEO is a Boca Raton, Fla.-based diversified government service provider, specializing in design, financing, development, and support services for secure facilities, processing centers, and community reentry centers.

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