GEO Group launches $400 million term loan B at SOFR plus 525 bps

By Sara Rosenberg

New York, April 1 – GEO Group Inc. held a lender meeting at 2 p.m. ET on Monday to launch a $400 million five-year term loan B (B1/BB) that is talked at SOFR plus 525 basis points with a 0.75% floor and an original issue discount of 98 to 98.5, according to a market source.

The term loan has hard call protection of 102 in year one and 101 in year two, and a total net leverage ratio covenant, the source said.

Citizens Bank is the lead arranger and administrative agent on the deal.

Commitments are due at noon ET on Thursday, the source added.

The company also plans on getting a $310 million revolving credit facility.

Proceeds will be used with other new secured debt, other new unsecured debt and cash on hand to refinance the company’s roughly $906.7 million of tranche 1 and tranche 2 exchange term loans, existing revolver, 10˝% second-lien notes due 2028, 9˝% second-lien notes due 2028 and 6% senior notes due 2026, including the payment of all premiums, accrued interest and expenses in connection with the transaction.

Overall, the company is targeting $1.6 billion of secured and unsecured financing in addition to the new revolver.

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.

© 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.