GEO Group ups term loan B to $450 million, changes OID to 99

By Sara Rosenberg

New York, April 4 – GEO Group Inc. upsized its five-year term loan B to $450 million from $400 million and revised the original issue discount to 99 from talk in the range of 98 to 98.5, according to a market source.

Pricing on the term loan B remained at SOFR plus 525 basis points with a 0.75% floor.

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

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

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

Proceeds will be used with secured and unsecured bonds 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.

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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