Geo Group Rises On Private Exchange Agreements With Convertible Senior Noteholders

(RTTNews) - Stock of The GEO Group, Inc. (GEO) is rising over 6 percent on Friday following the announcement of a private exchange agreement with certain shareholders of GEO Corrections Holdings, Inc.'s 6.50% Exchangeable Senior Notes due 2026.

The company stated that the shareholders agreed to exchange $177 million of the notes for an estimated valuation of $305 million, comprising cash and GEO's common stock.

Further, GEO clarified that it would finance the $177 million cash of the exchanges with the proceeds from its recent offering of senior secured notes due 2029 and senior unsecured notes due 2031, or available cash reserves.

Currently, GEO's stock is climbing 6.12 percent, to $14.91 over the previous close of $14.05 on the New York Stock Exchange. The stock has traded between $6.94 and $15.05 in the past 52-week period.