New Issue: GEO prices $250 million 7¾% eight-year notes at 98.547 to yield 8%

By Paul A. Harris

St. Louis, Oct. 7 - GEO Group, Inc. priced a $250 million issue of 7¾% eight-year senior notes (B1/BB-/) at 98.547 to yield 8% on Wednesday, according to an informed source.

The yield was printed at the tight end of the 8% to 8¼% price talk.

Bank of America Merrill Lynch, SunTrust Robinson Humphrey Inc., Wells Fargo Securities, BNP Paribas Securities Corp. and Barclays Capital Inc. were joint bookrunners.

Co-managers were TD Securities, Comerica Investments, US Bancorp, Avondale, First Analysis, RBC Capital Markets Corp., Macquerie and Sunrise.

Proceeds will be used to redeem the Boca Raton, Fla.-based private correctional services company's 8¼% senior notes due 2013, to pay down its revolving credit facility and for general corporate purposes.

Issuer:	GEO Group, Inc.
Face amount:	$250 million
Proceeds:	$246.368 million (approximate)
Maturity:	Oct. 15, 2017
Securities:	Senior notes
Bookrunners:	Bank of America Merrill Lynch, SunTrust Robinson Humphrey Inc., Wells Fargo Securities, BNP Paribas Securities Corp., Barclays Capital Inc.
Co-managers:	TD Securities, Comerica Investments, US Bancorp, Avondale, First Analysis, RBC Capital Markets Corp., Macquerie, Sunrise
Coupon:	7¾%
Price:	98.547
Yield:	8%
Spread:	508 bps
Call protection:	Make-whole at Treasuries plus 50 bps until Oct. 15, 2013, then callable at a premium
Equity clawback:	35% at 107.75 until Oct. 15, 2012
Trade date:	Oct. 7
Settlement date:	Oct. 20
Ratings:	Moody's: B1
	Standard & Poor's: BB-
Distribution:	Rule 144A with registration rights/Regulation S
Price talk:	8% to 8¼%

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