GEO - GEO announces transactions for strengthening debt maturities and capital structure
- The GEO ( NYSE: GEO ) announced a series of proposed transactions with certain of its secured and unsecured creditors which will address the substantial majority of GEO's outstanding debt scheduled to mature in 2023, 2024 and 2026.
- The company targets to complete the proposed transactions over the next 30 to 90 days.
- Currently, the company has to address ~$2B in outstanding debt maturities between 2023 and 2024 and ~$580M in outstanding debt maturities in 2026.
- Based on current commitments and minimum participation requirements, GEO's revised debt maturities are expected to be ~$170M in 2023, ~$430M in 2024, ~$340M in 2026, ~$900-960M in 2027 and ~$440M in 2028.
- On transaction completion, EO estimates its recourse interest expense would increase by ~$27M to $30M, pre-tax, in 2022, and that total interest expense for FY22 would be $151 to $154M, pre-tax.
- For 2023, GEO estimates that interest expense would increase an additional $37 to $41M, pre-tax.
- While it plans to provide updated FY22 financial guidance post the proposed transactions closure, it will have no impact on earlier provided Q2 guidance.
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GEO announces transactions for strengthening debt maturities and capital structure