The BNP Paribas-led deal for Geo Group pushed back in November is set to launch this Thursday at a bank meeting at the Parker Meridian in New York, according to a banker. The deal consists of a seven-year, $365 million term loan and a five-year, $150 million revolver, a $50 million increase to an existing revolver, which is expected to allow for about $50 million of letters of credit. The revolver is currently undrawn. Pricing on the revolver will remain at LIBOR plus 2 1/4%. Pricing on the term loan will depend upon ratings, but is being talked in the LIBOR plus 2 1/4-2 1/2% range, according to the banker.
"It's a very well performing credit," said the banker. The deal was pushed back from its launch in November to allow the company time to gain approval for its approximately $356.1 million acquisition of CentraCore Properties Trust (CIN, 12/4). Palm Beach Gardens, Fla.-based CentraCore owns 13 correctional facilities, 11 of which are currently leased to GEO under sale-lease back agreements. "They are now going to take those under their own umbrella," the banker said. "There is great asset coverage under there."
Based in Boca Raton, Fla., GEO delivers correctional, detention and residential treatment services to federal, state and local government agencies. Calls to a GEO spokesman were not returned.