BOCA RATON, Fla.—GEO Group Inc., which operates prisons and mental health centers, said Thursday it plans to expand its idle 500-bed prison in Baldwin, Mich.
GEO expects the expansion of the North Lake Correctional Facility to cost about $60 million and to be completed by the second quarter of 2009.
The 1,225-bed expansion of the company-owned prison will increase its capacity to 1,725 beds. GEO expects to market the prison to federal and state agencies around the country.
The company expects to restructure its existing credit line by the end of 2008 to support the expansion and other capital projects. GEO may add up to $150 million in borrowing capacity through an accordion feature in its existing credit pact.
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