GEO Group Increases Credit Facility to $450 Million, Extends Maturity

The GEO Group, Inc. (NYSE: GEO) announced it has amended its senior revolving credit facility, increasing commitments from $310 million to $450 million and extending the maturity date to July 14, 2030.

The amendment reduces the interest rate on revolving credit loans by 0.50 percentage points. SOFR-based loans will now accrue interest at the term SOFR reference rate plus 2.75% per annum, determined by the company's total leverage ratio. The amendment also increases GEO's capacity to make restricted payments over the next five years.

Prior to closing the amendment, GEO repaid $132 million of its Term Loan B outstanding under the credit agreement. The company expects to use proceeds from the sale of its Lawton Correctional Facility in Oklahoma, scheduled to close July 25, 2025, to pay off additional senior secured debt, including the remaining Term Loan B balance.

These transactions are expected to reduce GEO's total net debt to approximately $1.47 billion and position the company to consider potential future capital returns, according to the press release.

"We are pleased with this recent amendment to upsize and extend our Revolving Credit Facility, which is an important step to position our Company to consider potential future capital returns and support our future financial needs," said George C. Zoley, Executive Chairman of GEO.

GEO operates as a government service provider specializing in secure facilities, processing centers, and community reentry centers across the United States, Australia, South Africa, and the United Kingdom. The company's operations include ownership and support services for 98 facilities totaling approximately 77,000 beds.