GEO gets $296.3 million term loan, $700 million revolving facility

By Susanna Moon

Chicago, Sept. 3 – GEO Group, Inc. amended its credit agreement on Aug. 27 with BNP Paribas as administrative agent, according to an 8-K filing with the Securities and Exchange Commission.

The credit facility consists of a $296.3 million term loan with interest at Libor plus 250 basis points and a Libor floor of 0.75% and a $700 million revolving credit facility with initial interest of Libor plus 225 bps with no Libor floor, along with A$225 million available for the issue of financial letters of credit and performance letters of credit.

BNP Paribas Securities Corp. is the lead arranger, with Bank of America, NA, Barclays Bank plc, SunTrust Bank and Wells Fargo Capital Finance as the co-syndication agents.

As of Aug. 27, the revolver had about $330 million in outstanding borrowings along with about $60 million of letters of credit issued under the facility.

At closing, there were no letters of credit issued under the Australian letters-of-credit facility.

The revolver is set to mature on Aug. 27, 2019, and the term loan is set to mature on April 3, 2020.

The credit agreement restricts GEO’s ability to allow the total leverage ratio to exceed 5.75 times, to allow the senior secured leverage ratio to exceed 3.5 times or to allow the interest coverage ratio to be less than 3 times.

The Boca Raton, Fla.-based real estate investment trust specializes in the design, financing, development and operation of correctional facilities.

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