GEO Group redeems $650M senior secured notes and secures flexibility for $1.25B buyback

The GEO Group (GEO) has issued a notice of redemption for all $650M in outstanding aggregate principal amount of its 8.625% senior secured notes due 2029.

The redemption is scheduled for October 15, 2026.

GEO will redeem the notes at a price of $1,043.13 per $1,000 original principal amount, totaling approximately $678M, plus accrued and unpaid interest.

The company plans to fund the total redemption price by October 14, 2026, using net proceeds from its recently completed asset sales. Upon funding, the indenture governing the 2029 notes will be fully discharged through The Depository Trust Company.

Concurrently, GEO closed an amendment to its credit agreement, extending the maturity of its $550M Revolving Credit Facility to July 14, 2031, while expanding its restricted payments capacity.

Following the debt discharge and credit agreement amendment, GEO will be permitted to make unlimited restricted payments, including share repurchases under its credit facility, provided its total leverage ratio remains at or below 2.25 to 1.00 on a pro forma basis.

Similarly, under the indenture governing its $625M 10.25% Senior Unsecured Notes due 2031, unlimited restricted payments are allowed if its consolidated total leverage ratio is equal to or less than 2.00 to 1.00.

The financial restructuring directly supports GEO’s capital return strategy. The company's Board of Directors recently authorized a $750M increase to its share repurchase program, expanding total buyback capacity from $500M to $1.25B through December 31, 2029.