The GEO Group (NYSE:GEO)(“GEO”) announced today that it used $200.0 million of the aggregate net proceeds of approximately $226.3 million from its recent follow-on offering of 5,462,500 shares of its common stock, including the underwriters’ over-allotment option which was exercised on March 23, 2007, to repay debt outstanding under the term loan portion of its senior secured credit facility. The term loan bears interest at LIBOR plus 1.50 percent. As a result of the debt repayment, GEO will write off approximately $2.9 million in after-tax deferred financing fees during the first quarter of 2007.
Following the debt repayment, GEO’s total recourse debt will decrease from approximately $515.0 million to $315.0 million, comprised of $150.0 million in senior unsecured notes and $165.0 million in term loan borrowings, exclusive of capital lease liability balances.
