The GEO Group Delivers Notice of Redemption for Remaining Senior Notes Due 2023
September 07 2022 - 06:00AM
Business Wire
The GEO Group, Inc. (NYSE: GEO) (“GEO” or the “Company”)
has delivered a notice of redemption for all of the remaining
$125,734,000 in outstanding aggregate principal amount of its
5.125% Senior Notes due April 1, 2023 (CUSIP No. 36159RAG8) (the
“2023 Senior Notes”). The redemption of the 2023 Senior Notes will
occur on October 6, 2022 (the “Redemption Date”).
The redemption price for the 2023 Senior Notes will be equal to
$1,000 per $1,000 original principal amount, plus any accrued and
unpaid interest up to, but excluding, the Redemption Date. GEO has
deposited, with the trustee for the 2023 Senior Notes, the
redemption price for the 2023 Senior Notes, using available cash on
hand. As a result of such funding, the Indenture governing the 2023
Senior Notes has been discharged. Payment of the redemption price
for the 2023 Senior Notes will be made through the Depository Trust
Company.
George C. Zoley, Executive Chairman of GEO, said, “The
redemption of our remaining 2023 Senior Notes is another important
step towards addressing our near-term debt maturities. Along with
our recently completed transactions to stagger our debt maturities
over a longer period of time, we have now been able to reduce our
outstanding debt due prior to 2026 to approximately $170 million.
We remain focused on our goal of reducing net recourse debt by
$200–250 million annually and decreasing our net leverage to
below 3.5 times Adjusted EBITDA by the end of 2023 and to below 3
times Adjusted EBITDA by the end of 2024. We remain optimistic that
these important efforts have the potential to unlock additional
equity value for our shareholders.”
About The GEO Group
The GEO Group, Inc. (NYSE: GEO) is a leading diversified
government service provider, specializing in design, financing,
development, and support services for secure facilities, processing
centers, and community reentry centers in the United States,
Australia, South Africa, and the United Kingdom. GEO’s diversified
services include enhanced in-custody rehabilitation and
post-release support through the award-winning GEO Continuum of
Care®, secure transportation, electronic monitoring,
community-based programs, and correctional health and mental health
care. GEO’s worldwide operations include the ownership and/or
delivery of support services for 102 facilities totaling
approximately 82,000 beds, including idle facilities and projects
under development, with a workforce of up to approximately 18,000
employees.
Use of forward-looking statements
This news release may contain “forward-looking statements”
within the meaning of Section 21E of the Securities Exchange Act of
1934, as amended, and the U.S. Private Securities Litigation Reform
Act of 1995. Readers are cautioned not to place undue reliance on
these forward-looking statements and any such forward-looking
statements are qualified in their entirety by reference to the
following cautionary statements. All forward-looking statements
speak only as of the date of this news release and are based on
current expectations and involve a number of assumptions, risks and
uncertainties that could cause the actual results to differ
materially from such forward-looking statements, including our
ability to redeem the 2023 Senior Notes on October 6, 2022, our
ability to reduce net recourse debt by $200-250 million annually,
and our ability to decrease net leverage at the anticipated rate
over the next two years. Readers are strongly encouraged to read
the full cautionary statements contained in GEO’s filings with the
U.S. Securities and Exchange Commission. GEO disclaims any
obligation to update or revise any forward-looking statements.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20220906006068/en/
Pablo E. Paez 1-866-301-4436 Executive Vice President, Corporate
Relations
Geo (NYSE:GEO)
Historical Stock Chart
From Feb 2024 to Mar 2024
Geo (NYSE:GEO)
Historical Stock Chart
From Mar 2023 to Mar 2024