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Stock Market & Financial Investment News

News Breaks
January 18, 2013
07:51 EDTGEOGeo Group receives favorable private letter ruling from IRS, elects REIT status
The GEO Group has received a favorable private letter ruling from the IRS in connection with GEO’s previously announced conversion to a real estate investment trust. GEO also has received an opinion from Skadden, Arps, Slate, Meagher & Flom, LLP, which advised GEO on its REIT conversion that GEO qualifies as a REIT. Based on the receipt of the private letter ruling and the Skadden REIT opinion, GEO’s Board of Directors has authorized GEO to elect REIT status effective January 1, 2013. GEO will seek inclusion in the appropriate REIT indices at the earliest possible date. GEO also announced that on January 17, 2013, the Board declared GEO’s first ever quarterly cash dividend as a REIT of 50c per share of common stock based on GEO’s new outstanding share count of approximately 71.3 million, which includes the issuance of approximately 9.7 million shares in connection with GEO’s previously announced $350M special dividend which was paid on December 31, 2012. GEO’s quarterly REIT cash dividend of 50c per share will be paid on March 1, 2013 to shareholders of record as of the close of business on February 15, 2013.
News For GEO From The Last 14 Days
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January 28, 2015
08:26 EDTGEOGeo Group announces contract for reactivation of 400-bed facility
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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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