GEO Group restates $300 million term loan B, $700 million revolver

By Marisa Wong

Madison, Wis., April 9 - GEO Group, Inc. amended and restated its senior credit agreement for a $300 million term loan B due April 3, 2018 and a $700 million revolving credit facility due April 3, 2020, according to an 8-K filing with the Securities and Exchange Commission.

Interest for the term loan B is initially Libor plus 250 basis points with a Libor floor of 0.75%, and interest for the revolver is initially Libor plus 250 bps with no Libor floor.

The applicable margin is based on the company's total leverage ratio and ranges from 175 bps to 275 bps. The commitment fee ranges from 35 bps to 37.5 bps.

According to the 8-K, the credit agreement requires that the company's total leverage ratio not exceed 5.75 times, its senior secured leverage ratio not exceed 3.5 times and the interest coverage ratio not fall below 3 times.

As of April 4, the revolver had about $240 million of outstanding borrowings along with roughly $60 million of letters of credit.

The company said in a press release that it used borrowings under the amended and restated facility along with proceeds from its previously announced $300 million 5 1/8% senior notes offering to refinance its previous senior credit facility.

BNP Paribas is the administrative agent for the amended and restated credit agreement, which was completed on April 3. BNP Paribas Securities Corp. is the lead arranger, and Bank of America, NA, Barclays Bank plc, SunTrust Bank and Wells Fargo Capital Finance are the co-syndication agents.

GEO is an equity real estate investment trust based in Boca Raton, Fla.

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