FX.co ★ Geo Group Rises On Private Exchange Agreements With Convertible Senior Noteholders

The GEO Group, Inc.'s shares have experienced an increase of over 6 percent following the announcement about a private exchange agreement between The GEO Group and certain shareholders of GEO Corrections Holdings, Inc. This agreement involves GEO Correction's 6.50% Exchangeable Senior Notes due in 2026.

The GEO Group, Inc. has disclosed that these shareholders have agreed to swap $177 million of these notes for a projected worth of $305 million, which includes cash and common shares of The GEO Group, Inc.

To cover the $177 million cash portion of these exchanges, The GEO Group, Inc. plans to use the proceeds from its recent offering of senior secured notes due in 2029 and senior unsecured notes due in 2031, or alternatively from its available cash reserves.

At present, the stock of The GEO Group, Inc. is witnessing a rise of 6.12 percent to hit $14.91, up from the previous closing rate of $14.05 on the New York Stock Exchange. Over the past 52 weeks, the company's shares have traded in the range of $6.94 to $15.05.