NASHVILLE, TN, Jan 09, 2012 (MARKETWIRE via COMTEX) --Corrections Corporation of America (NYSE: CXW) (the "Company" or
"CCA") announced today that on January 6, 2012 it entered into an
amendment and restatement of its current senior credit facility. The
facility has been expanded to a total capacity of up to $785 million
aggregate principal amount from $450 million. The maturity for the
amended senior credit facility has been extended through December
2016 and will initially bear interest at London Interbank Offered
Rate (LIBOR) plus 1.5%, subject to adjustments based on CCA's
leverage ratio. Borrowings under the amended senior credit facility
will be used to repurchase and redeem $335.0 million aggregate
principal amount of CCA's outstanding 6 1/4% $375 Million Senior
Notes due 2013 (the "2013 Notes") as described below, and for general
corporate purposes.
CCA also announced the expiration and final results of its previously
announced cash tender offer to purchase up to $150 million of the
2013 Notes. The tender offer expired at 11:59 p.m., New York City
time, on January 5, 2012 (the "Expiration Date"). As of the
Expiration Date, CCA received tenders with respect to $57,526,000
aggregate principal amount of the 2013 Notes (approximately 15.34% of
the outstanding aggregate principal amount of the 2013 Notes)
pursuant to the Company's Offer to Purchase Statement dated December
5, 2011. With the amendment and restatement of the senior credit
facility, the conditions to the tender offer have been satisfied, and
CCA accepted for payment and paid for all such validly tendered and
not validly withdrawn notes on January 6, 2012.
In addition, CCA has instructed the trustee for the 2013 Notes to
issue a notice of redemption for $277,474,000 in aggregate principal
amount of the 2013 Notes in amounts of $2,000 or an integral multiple
of $1,000 in excess thereof, at a redemption price equal to 100% of
the principal amount, together with accrued and unpaid interest
through (but not including) the February 13, 2012 redemption date.
After giving effect to the $335 million of combined purchase and
redemptions of the 2013 Notes, CCA will have $40.0 million aggregate
principal amount of 2013 Notes outstanding.
This press release is for informational purposes only and is not an
offer to buy or the solicitation of an offer to sell with respect to
any securities. The tender offer was made solely by means of the
tender offer documents.
About CCA
CCA is the nation's largest owner and operator of
partnership correction and detention facilities and one of the
largest prison operators in the United States, behind only the
federal government and three states. We currently operate 67
facilities, including 46 company-owned facilities, with a total
design capacity of approximately 92,000 beds in 20 states and the
District of Columbia. We specialize in owning, operating and managing
prisons and other correctional facilities and providing inmate
residential and prisoner transportation services for governmental
agencies. In addition to providing the fundamental residential
services relating to inmates, our facilities offer a variety of
rehabilitation and educational programs, including basic education,
religious services, life skills and employment training and substance
abuse treatment. These services are intended to reduce recidivism and
to prepare inmates for their successful re-entry into society upon
their release. We also provide health care (including medical, dental
and psychiatric services), food services and work and recreational
programs.
Forward-Looking Statements
This press release contains statements
as to our beliefs and expectations of the outcome of future events
that are forward-looking statements as defined within the meaning of
the Private Securities Litigation Reform Act of 1995. These
forward-looking statements are subject to risks and uncertainties
that could cause actual results to differ materially from the
statements made. These include, but are not limited to, the risks and
uncertainties associated with: (i) general economic and market
conditions, including the impact governmental budgets can have on our
per diem rates, occupancy and overall utilization; (ii) fluctuations
in our operating results because of, among other things, changes in
occupancy levels, competition, increases in cost of operations,
fluctuations in interest rates and risks of operations; (iii) our
ability to obtain and maintain correctional facility management
contracts, including as a result of sufficient governmental
appropriations and inmate disturbances; (iv) changes in the
privatization of the corrections and detention industry, the public
acceptance of our services, the timing of the opening of and demand
for new prison facilities and the commencement of new management
contracts; (v) the outcome of California's realignment program and
its utilization of out of state private correctional capacity; and
(vi) increases in costs to construct or expand correctional
facilities that exceed original estimates, or the inability to
complete such projects on schedule as a result of various factors,
many of which are beyond our control, such as weather, labor
conditions and material shortages, resulting in increased
construction costs. Other factors that could cause operating and
financial results to differ are described in the filings made from
time to time by us with the Securities and Exchange Commission.
CCA takes no responsibility for updating the information contained in
this press release following the date hereof to reflect events or
circumstances occurring after the date hereof or the occurrence of
unanticipated events or for any changes or modifications made to this
press release.
Contact:
Investors and Analysts:
Karin Demler
CCA
(615) 263-3005
Financial Media:
David Gutierrez
Dresner Corporate Services
(312) 780-7204
SOURCE: Corrections Corporation of America
