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Stock Market & Financial Investment News

News Breaks
December 28, 2012
08:32 EDTGEOGeo Group announces election results for $350M special dividend
The GEO Group announced the results of the elections made by shareholders of GEO as to the form of distribution they wish to receive in connection with GEO’s previously announced special dividend of $352,206,508, or $5.68 per share of common stock, which will be paid on December 31 to shareholders of record as of December 12. As of December 12 there were approximately 62,008,188 shares of GEO common stock outstanding. The results of elections made by GEO shareholders are as follows: 10,560,240 shares of GEO common stock (approximately 17% of the outstanding shares of GEO common stock) elected to receive GEO common stock. 39,627,351 shares of GEO common stock (approximately 64% of the outstanding shares of GEO common stock) elected to receive cash. Pursuant to GEO’s previously announced special dividend terms, GEO will issue approximately 9,687,161 shares of GEO common stock based on an average opening price per share of GEO common stock on the New York Stock Exchange of $28.32 on December 26 and December 27, the two trading days following the election deadline of December 24.
News For GEO From The Last 14 Days
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January 26, 2015
07:57 EDTGEOGeo Group announces acquisition of eight facilities totaling over 6,500 beds
The GEO Group announced the signing of a definitive agreement to acquire eight correctional and detention facilities totaling more than 6,500 beds from LCS Corrections Services, a privately-held owner and operator of correctional and detention facilities in the United States, and its affiliates. The LCS transaction will be an asset purchase. Pursuant to the terms of the definitive agreement, GEO will acquire the LCS Facilities for approximately $312M, or approximately $48,000 per bed, in an all cash transaction, excluding transaction related expenses. Additionally, LCS has the opportunity to receive an additional payment if the Facilities exceed certain performance targets after the closing over a period of approximately 18 months. The aggregate amount of the purchase price to be paid at closing and the Earnout Payment, if achieved, will not exceed $350M. LCS will use the proceeds to repay approximately $302M in outstanding net debt. GEO will not assume any debt as a result of the transaction. GEO will finance the acquisition of the LCS Facilities with borrowings under its $700M Revolving Credit Facility. Following the LCS transaction, GEO will have approximately $260M in available borrowing capacity under its Revolving Credit Facility. The transaction is expected to close by the end of February 2015, subject to the fulfillment of customary closing conditions. On an annualized basis, the acquisition is expected to immediately increase GEO’s revenues by approximately $75M-$80M and be initially 10c-12c accretive to AFFO per share, excluding one-time transaction-related expenses. Additionally, GEO expects to achieve substantial improvements in the utilization of the LCS Facilities which is expected to create additional accretion to AFFO per share over the next 12-24 months.

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