Company has completed the sales of its 1,280-bed Adelanto West ICE Processing Center ("Adelanto West"), 660-bed Adelanto East ICE Processing Center ("Adelanto East"), and 704-bed Desert View Annex ("Desert View") located in Adelanto, California to the United States of America and its assigns, by and through the Department of Homeland Security, for an aggregate gross sales price of $950 million. After federal and state taxes and transaction fees and expenses, GEO anticipates receiving approximately $705 million in net proceeds from these sales.
GEO expects to continue providing support services under the Company’s existing contract with U.S. Immigration and Customs Enforcement ("ICE") for Adelanto East, Adelanto West, and Desert View, which has a full term effective through December 19, 2034, inclusive of the current term ending December 19, 2029 and a five-year option period.
GEO expects to use the net proceeds from the sales along with cashflow from operations to reduce the Company’s debt, repurchase shares of the Company’s common stock, and for other general corporate purposes. GEO’s Board of Directors has increased the Company’s share repurchase authorization, which is effective through December 31, 2029, by $750 million to $1.25 billion.
In addition to these completed sales, GEO remains engaged in an active process for the sale of multiple other company-owned facilities to ICE, subject to mutual agreement on price and GEO’s continued management of those facilities under long-term support services contracts. At this time, there is no definitive agreement in place nor a precise timeline for the closing of any additional transactions, and GEO can provide no assurance that any additional transactions will occur.
Repurchases of GEO’s outstanding common stock will be made in accordance with applicable securities laws and may be made at our senior management’s discretion from time to time in the open market, by block purchase, through privately negotiated transactions, pursuant to a trading plan, or otherwise in compliance with Rule 10b-18 under the Securities Exchange Act of 1934, as amended. The authorization for the share repurchase program may be extended, increased, decreased, suspended or terminated by our Board of Directors in its discretion at any time. Repurchases of the Company's common stock (and the timing thereof) will depend upon market conditions, regulatory requirements, the Company's existing obligations, including its Credit Agreement, other corporate liquidity requirements and priorities and other factors as may be considered in the Company's sole discretion. The authorization for the share repurchase program does not obligate GEO to purchase any particular amount of the Company’s common stock.