The syndication of two deals has been pushed back -- one because of pending acquisition approval. BNP Paribas' $360 million deal for GEO Group will hit the market next year and UBS and National City Bank's $270 million deal for Harrington Holdings has been rescheduled for this week.
Originally set to launch last Thursday, the $360 million deal for GEO Group will launch in mid-January, a banker said. The financing, which will fund GEO's approximately $356.1 million acquisition of CentraCore Properties Trust, was pushed back to allow the company time to gain approval for the buyout, he said. Calls to a GEO spokesman were not returned.
Led by BNP Paribas, the deal was set to include a $130 million term loan "B" as well as an increase of $50 million to GEO's existing $100 million revolver (CIN, 11/22). Price talk was around LIBOR plus 2% on the revolver and LIBOR plus 2 1/4% on the term loan. Based in Boca Raton, Fla., GEO delivers correctional, detention and residential treatment services to federal, state and local government agencies. Palm Beach Gardens, Fla.-based CentraCore owns 13 correctional facilities, 11 of which are currently leased to GEO under sale-lease back agreements.
Syndication of the deal for Harrington was originally set for last Thursday, but the bank meeting was rescheduled for tomorrow. The reason for the change could not be determined. The credit is set to consist of a six-year, $45 million revolver; a seven-year, $165 million first-lien term loan and a seven-and-a-half-year, $60 million second-lien term loan. Pricing could not be determined by press time. Calls to a company spokesman were not returned.