S&P ups GEO, rates loans, notes

S&P said it raised GEO Group Inc.’s issuer rating by one notch to B+ from B and assigned BB issue-level and 1 recovery ratings to its revolver, term loan B and first-lien secured notes due 2029 and B issue-level with 5 recovery ratings to its unsecured notes due 2031.

“The rating upgrade reflects GEO's successful debt refinancing, extended debt maturity profile and reduced risks of a distressed debt restructuring. GEO has comprehensively refinanced its debt capitalization. Notably, the transaction extends its weighted average maturity profile by 2.4 years, results in a modest reduction of the company's cash interest expense, loosens other terms including the limitations on share repurchases, and upsizes the revolver,” S&P said in a statement.

The outlook is stable.

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