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8-K - FORM 8-K - GEO GROUP INC | g24303e8vk.htm |
EX-10.44 - EX-10.44 - GEO GROUP INC | g24303exv10w44.htm |
Exhibit 99.1
NEWS RELEASE |
One Park Place, Suite 700 621 Northwest 53rd Street Boca Raton, Florida
33487 www.thegeogroupinc.com
CR-10-25
THE GEO GROUP COMPLETES NEW $750 MILLION SENIOR CREDIT FACILITY;
EXPECTS TO CLOSE CORNELL MERGER ON AUGUST 12, 2010
EXPECTS TO CLOSE CORNELL MERGER ON AUGUST 12, 2010
Boca Raton, Fla. August 5, 2010 The GEO Group (NYSE: GEO) (GEO) announced today the closing
of a new $750.0 million Senior Credit Facility comprised of a five-year, $150.0 million Term Loan A
bearing interest at LIBOR plus 2.50%; a six-year, $200.0 million Term Loan B bearing interest at
LIBOR plus 3.25% with a LIBOR floor of 1.50%; and a five-year $400.0 million Revolving Credit
Facility (the Revolver) bearing interest at LIBOR plus 2.50%.
GEOs new Senior Credit Facility will be used to repay borrowings outstanding under GEOs existing
Revolving Credit Facility and Term Loan B; fund the cash consideration and transaction-related
expenses in connection with GEOs previously announced merger with Cornell Companies (NYSE:CRN)
(Cornell); and repay Cornells current senior debt. Immediately upon completion of the merger,
the new Term Loan A and Term Loan B are expected to be fully funded, and GEO expects to have
approximately $220.0 million in borrowings outstanding, approximately $50.0 million in letters of
credit, and between $120.0 million and $130.0 million in available borrowing capacity under the
Revolver.
GEO expects the closing of the Cornell merger to occur on Thursday, August 12, 2010 following the
previously announced special meetings of Cornell and GEO stockholders. The closing of the
transaction remains subject to GEO and Cornell stockholder approval, as well as other customary
closing conditions.
The GEO Group, Inc. (GEO) is a world leader in the delivery of correctional, detention, and
residential treatment services to federal, state, and local government agencies around the globe.
GEO offers a turnkey approach that includes design, construction, financing, and operations. GEO
represents government clients in the United States, Australia, South Africa, and the United
Kingdom. GEOs worldwide operations include the management and/or ownership of 62 correctional and
residential treatment facilities with a total design capacity of approximately 60,500 beds,
including projects under development.
This press release contains forward-looking statements regarding future events and future
performance of GEO that involve risks and uncertainties that could materially affect actual
results, including statements regarding estimated earnings, revenues and costs and our ability to
maintain growth and strengthen contract relationships. Factors that could cause actual results to
vary from current expectations and forward-looking statements contained in this press release
include, but are not limited to: (1) GEOs ability to successfully pursue further growth and
continue to enhance shareholder value; (2) GEOs ability to access the capital markets in the
future on satisfactory terms or at all; (3) risks associated with GEOs ability to control
operating costs associated with contract start-ups; (4) GEOs ability to timely open facilities as
planned, profitably manage such facilities and successfully integrate such facilities into GEOs
operations without substantial costs; (5) GEOs ability to win management contracts for which it
has submitted proposals and to retain existing management contracts; (6) GEOs ability to obtain
future financing on acceptable terms; (7) GEOs ability to sustain company-wide occupancy rates at
its facilities; and (8) other factors contained in GEOs Securities and Exchange Commission
filings, including the forms 10-K, 10-Q and 8-K reports.
-End-
Contact:
|
Pablo E. Paez | 1-866-301-4436 | ||
Director, Corporate Relations |