Movers and SHAKERS
The GEO Group, Inc. (GEO)
Tapping Market for $200 Million in Exchangeable Bonds
With over 94,000 beds owned, leased or managed across its business lines and serving over 260,000 people daily, GEO is a leading provider of mission critical real estate to its governmental partners. The Company is the first fully integrated equity REIT specializing in the design, financing, development, and operation of secure facilities, processing centers, and community reentry centers in the U.S., Australia, South Africa, and the U.K.
Joe Gomes, Senior Research Analyst, Noble Capital Markets, Inc.
Refer to the full report for the price target, fundamental analysis, and rating.
Bond Offering. Late last week The GEO Group announced an offering of $200 million of senior unsecured notes due 2026. The notes will be sold to qualified institutional investors. There is the potential for an additional $30 million for over-allotments. Net proceeds, $192 million or $221.1 million if the full over-allotment is exercised, will be used to repurchase the 5.875% notes due 2022, of which there was $193.9 million outstanding as of yearend.
Terms. The new notes will bear interest at an annual rate of 6.5%, plus an additional amount based on the dividends paid by GEO on its common stock. In essence, note holders will receive annual dividends based on the shares into which the notes are convertible. The exchange rate for the notes is 108.4011 shares per $1,000 of principal amount (exchange price of approximately $9.25 per share), or ...
This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).
*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary. Proper due diligence is required before making any investment decision.