The GEO Group Comments on Bank of America Decision and Expects No Impact on Recently Extended Senior Revolving Credit Facility
June 26 2019 - 2:54PM
Business Wire
The GEO Group (NYSE: GEO) (“GEO”) commented today on Bank
of America’s decision to no longer extend financing to correctional
and rehabilitation services providers. GEO expects there to be no
impact to its Senior Revolving Credit Facility (the “Revolver”),
which was recently extended. The maturity for the amended Revolver
was extended to May 17, 2024. The borrowing capacity under the
amended Revolver remains at $900 million, and its pricing remains
unchanged currently bearing interest at LIBOR plus 2.25%.
George C. Zoley, GEO’s Chairman of the Board, Chief Executive
Officer and Founder, said: “For over thirty years, we have provided
high-quality services to the federal government under both Democrat
and Republican administrations. To be clear, The GEO Group has
never managed any facilities that house unaccompanied minors, nor
have we ever managed border patrol holding facilities.
“The Processing Centers we manage on behalf of U.S. Immigration
and Customs Enforcement are not overcrowded and comply with
performance-based standards, which were first established under
President Barack Obama’s administration. These modern Processing
Centers provide safe and humane residential care, high quality
medical services, and enhanced amenities including artificial turf
soccer fields, flat screen TVs in living areas, indoor and outdoor
recreation, classrooms, multipurpose rooms, and libraries.”
GEO has had a long-standing public-private partnership with the
federal government that dates back to the 1980s. GEO’s facilities
are highly rated by independent accreditation entities and provide
high-quality, culturally responsive services in safe and humane
residential environments.
GEO plays no role in passing criminal justice or immigration
laws and has never advocated for or against criminal justice or
immigration enforcement policies. Learn more about GEO’s role as a
long-standing government services provider:
wearegeo.com/what-we-do-and-what-we-dont-do/
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/20190626005742/en/
Pablo E. Paez, 1-866-301-4436 Executive Vice President,
Corporate Relations
Geo (NYSE:GEO)
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