GEO gets $150 million bank loan financing commitment for Cornell deal

By Angela McDaniels

Tacoma, Wash., April 19 - GEO Group Inc. has received $150 million of committed financing from BNP Paribas under the accordion feature of its senior credit facility, according to a company news release.

The proceeds, combined with GEO's current debt availability, will be used the finance the cash portion of its acquisition of Cornell Cos. Inc.

The companies announced a definitive merger agreement on Monday, under which GEO Group will acquire Cornell at an estimated enterprise value of $685 million, including the assumption of $300 million in Cornell debt and excluding cash.

Cornell stockholders can choose to receive GEO common stock or cash. In order to preserve the tax-deferred treatment of the transaction, no more than 20% of the outstanding shares of Cornell common stock may be exchanged for cash.

The merger is expected to close in the third quarter.

GEO Group and Cornell are prison operators based in Boca Raton, Fla., and Houston, respectively.

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