GEO - GEO Group completes $84.4M asset sale reduces outstanding debt

• The GEO Group ( NYSE: GEO ) announced on Wednesday the completion of $84.4M asset sale and repayment of remaining $146.9M in term loans due in 2024.
• The government service provider completed the sale of its equity investment interest in the government-owned Ravenhall Correctional Centre in Australia for ~$84.4M gross proceeds, pre-tax. Proceeds, along with available cash on hand, will be used to repay all of the remaining $146.9M outstanding principal of its Term Loan B and its Tranche 3 Term Loan, both due March 23, 2024
• As previously announced, GEO had also delivered a notice of redemption for the remaining $125.7M outstanding aggregate principal of its 5.125% Senior Notes due April 1, 2023, which will occur on October 6, 2022.
• Combined with the repayment of the 2024 Term Loans, the company will have discharged or fully repaid $272.7M of recourse debt since closing on its transactions to comprehensively address the substantial majority of its outstanding debt on August 19, 2022.
• These transaction swill enable the company to reduce its outstanding debt maturing prior to 2026 to ~$23M, from $2B.
• "These important steps have allowed us to make substantial progress towards our goal of reducing our net leverage to below 3.5 times Adjusted EBITDA by the end of 2023 and to below 3 times Adjusted EBITDA by the end of 2024. We remain optimistic that these efforts have the potential to unlock additional equity value for our shareholders," said Executive Chairman George Zoley.
• GEO shares gained 3% premarket

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