The GEO Group (NYSE: GEO) (“GEO”) announced today that it has completed the defeasance of non-recourse bonds associated with the 1,904-bed South Texas Detention Complex (the “Facility”) in Pearsall, Texas for approximately $2.5 million, net of cash reserves.
The bonds had approximately $17.0 million in remaining principal and carried an interest rate of approximately 5.0 percent. The transaction is expected to be modestly accretive to GEO’s Adjusted Funds from Operations and will save GEO approximately $5.5 million in principal debt payments in 2014.
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, and community reentry 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 96 facilities totaling approximately 73,000 beds, including projects under development, with a growing workforce of approximately 18,000 professionals.
This press release contains forward-looking statements regarding
future events and future performance of GEO that involve risks and
uncertainties that could materially affect actual results, including
statements regarding estimated earnings, revenues and costs and our
ability to maintain growth and strengthen contract relationships.
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) risks associated with 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; (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 the forms
10-K, 10-Q and 8-K reports.
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