GEO amends facility, lowering pricing on $200 million term loan B

By Angela McDaniels

Tacoma, Wash., May 6 - GEO Group, Inc. amended its credit facility on Monday, reducing the interest rate on the term loan B to Libor plus 275 basis points and the Libor floor to 1%.

The previous interest rate was Libor plus 325 bps, and the Libor floor was 1.5%, according to an 8-K filing with the Securities and Exchange Commission.

If GEO issues debt and that issuance causes its total leverage ratio to meet or exceed 3.5 times, the company is required to repay an amount of the loans equal to the net proceeds of the debt offering. Following the amendment, any loans repaid under this requirement must be repaid at 101 instead of par.

The facility includes a $150 million term loan A due 2015, a $150 million term loan A-2 due 2015, a $200 million term loan B due 2016 and a $500 million revolving credit facility due 2015.

The company paid an amendment fee of 12.5 bps.

BNP Paribas is the administrative agent.

GEO is a Boca Raton, Fla.-based provider of correctional, detention and residential treatment services to federal, state and local government agencies.

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