GEO Group Enters Into Private Exchange Agreements With Convertible Senior Noteholders

(RTTNews) - Friday, The GEO Group, Inc. (GEO) announced a private exchange agreement with certain holders of GEO Corrections Holdings, Inc.'s 6.50% Exchangeable Senior Notes due 2026.

Noteholders agreed to exchange $177 million of the notes for an estimated valuation of $305 million, comprising cash and GEO's common stock.

The exact exchange value and stock shares issued will depend on the average price of GEO's common stock over 20 trading days starting today. GEO plans to finance the $177 million cash portion of the exchanges using proceeds from its recent offering of senior secured notes due 2029 and senior unsecured notes due 2031, or available cash reserves.

After the exchange, $53 million of the senior notes will remain outstanding.