On Friday, The GEO Group, Inc. made an announcement concerning a private bond exchange contract with specific bondholders of GEO Corrections Holdings, Inc. These involved the 6.50% Exchangeable Senior Notes that are due in 2026.
The bondholders have agreed to a swap of the notes, valued at $177 million, for a predicted evaluation of $305 million. This total will consist of both cash and common stock from GEO.
The precise value of the exchange and the number of shares issued will be reliant on GEO's common stock's average price over a span of 20 trading days, which starts today. The GEO Group plans to fund the $177 million cash segment of the trade using proceeds from its recent offer of senior protected notes, which are due in 2029 along with senior unprotected notes that are due in 2031, or from readily available cash reserves.
Once the exchange is concluded, the remaining outstanding balance of the senior notes will amount to $53 million.
