Corrections Corp. tenders, seeks consents for $465 million 7¾% notes

By Susanna Moon

Chicago, March 21 - Corrections Corp. of America said it began a cash tender offer and consent solicitation for its $465 million principal amount of outstanding 7¾% senior notes due 2017.

The company is soliciting consents to amend the notes to eliminate substantially all of the restrictive covenants and events of default provisions in the note indenture, according to a press release.

The total purchase price will be $1,050 per $1,000 principal amount of notes tendered by the consent payment deadline of 5 p.m. ET on April 3, 2013.

The total payment includes a consent payment of $30.00 per $1,000 principal amount.

Holders who tender their notes after the consent deadline will receive $1,020 per $1,000 of notes.

The company also will pay accrued interest up to but excluding the settlement date.

The offer will run until 11:59 p.m. ET on April 17.

Tendered notes may be withdrawn by the early deadline.

The company said it plans to execute a supplemental indenture amending the notes upon receiving consents from holders of at least a majority of the outstanding notes.

The offer is subject to a requisite consent condition and a financing condition, the release noted.

BofA Merrill Lynch (888 292-0070 or collect 980 387-3907), JPMorgan, SunTrust Robinson Humphrey, Inc., Wells Fargo Securities and PNC Capital Markets LLC are the dealer managers and solicitation agents. D.F. King & Co., Inc. (800 488-8095) is the information agent and tender agent.

Corrections Corp. of America is a Nashville-based owner and operator of privatized correctional and detention facilities.

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