By Ben Glickman


Shares of GEO Group touched a nearly four-year high Friday after the company reached an exchange agreement with certain noteholders to settle debt due in two years.

The stock was up 7.6% to $15.12 in midday trading, reaching its highest intraday level since April 2020. Shares are up about 39% this year.

The Boca Raton, Fla.-based prison operator said the holders had agreed to exchange $177 million in principal amount of outstanding 6.5% exchangeable senior notes due 2026 for a current value of $305 million.

The principal amount will be funded in cash, while the remainder will be in shares of common stock. The company expects to fund the cash portion of the deal with net proceeds from previous notes offerings.

GEO Group said about $53 million in aggregate principle on the notes due 2026 would remain after the exchange.

GEO Group also announced after the bell Thursday that it had priced a private offering of $1.28 billion aggregate principal of senior notes. The notes sold in the private offering are due 2029 and 2031.

Combined with another term loan, the company is expecting net proceeds of about $1.67 billion.


Write to Ben Glickman at ben.glickman@wsj.com

(END) Dow Jones Newswires

04-05-24 1249ET