The GEO Group Announces Closing of Refinancing of Non-Recourse Debt Related to Ravenhall Correctional Centre in Australia
22 May 2019 - 8:55PM
Business Wire
The GEO Group (NYSE:GEO) (“GEO”) announced today the
closing of an offering of AUD $461,558,749 aggregate principal
amount of non-recourse senior secured notes due 2042 (the “Notes”).
The amortizing Notes were issued by Ravenhall Finance Co Pty
Limited in a private placement pursuant to Section 4(a)(2) of the
Securities Act of 1933, as amended. The Notes were issued with a
coupon and yield to maturity of 4.23% and an expected final
maturity date of March 31, 2042. The net proceeds from this
offering were used to refinance the outstanding non-recourse senior
secured debt balance associated with the development of the
Ravenhall Correctional Centre in Australia.
The 1,300-bed Ravenhall Correctional Centre was developed by a
GEO led consortium comprised of GEO’s wholly-owned subsidiary, The
GEO Group Australia Pty. Ltd. (“GEO Australia”), John Holland
Construction, and Honeywell under a contract with the State of
Victoria. The $700 million project was financed under a
Public-Private Partnership structure, which included a capital
investment from GEO of approximately $90 million with returns on
investment consistent with GEO’s company-owned facilities. GEO
Australia operates the Centre, which opened in late 2017, under a
25-year contract with the State of Victoria.
Barclays acted as lead placement agent for the offering. This
news release shall not constitute an offer to sell or the
solicitation of an offer to buy, nor shall there be any sale of the
Notes in any jurisdiction in which such offer, solicitation or sale
would be unlawful. This offering may be made only by means of a
prospectus.
The GEO Group, Inc. (NYSE: GEO) is the first fully integrated
equity real estate investment trust specializing in the design,
financing, development, and operation of correctional, detention,
and community reentry facilities around the globe. GEO is the
world's leading provider of diversified correctional, detention,
community reentry, and electronic monitoring services to government
agencies worldwide with operations in the United States, Australia,
South Africa, and the United Kingdom. GEO's worldwide operations
include the ownership and/or management of 135 facilities totaling
approximately 96,000 beds, including projects under development,
with a growing workforce of approximately 23,000 professionals.
This press release contains forward-looking statements regarding
future events and the future performance of GEO that involve risks
and uncertainties that could materially affect actual results.
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) GEO’s ability to
successfully pursue further growth and continue to enhance
shareholder value; (2) GEO’s ability to access the capital markets
in the future on satisfactory terms or at all; (3) GEO’s ability to
control operating costs associated with contract start-ups; (4)
GEO’s ability to timely open facilities as planned, profitably
manage such facilities and successfully integrate such facilities
into GEO’s operations without substantial costs; (5) GEO’s ability
to win management contracts for which it has submitted proposals
and to retain existing management contracts; (6) GEO’s ability to
obtain future financing on acceptable terms or at all; (7) GEO’s
ability to sustain company-wide occupancy rates at its facilities;
and (8) other factors contained in GEO’s Securities and Exchange
Commission filings, including its Form 10-K, 10-Q and 8-K
reports.
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version on businesswire.com: https://www.businesswire.com/news/home/20190522005191/en/
Pablo E. Paez 1-866-301-4436Executive Vice President, Corporate
Relations
Geo (NYSE:GEO)
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