Corrections Corp. of America completes tender offer for 7¾% notes

By Marisa Wong

Madison, Wis., April 18 - Corrections Corp. of America said that a total of $315.4 million principal amount, or 67.8%, of its 7¾% senior notes due 2017 were tendered by 11:59 p.m. ET on April 17, the expiration of its previously announced cash tender offer for any and all of the outstanding 7¾% notes.

The amount of notes tendered by the end of the offer is unchanged from the amount tendered as of the consent payment deadline at 5 p.m. ET on April 3. All of the early tendered notes were accepted for purchase on April 4.

Based on the amount of tenders received by the early deadline, the company had enough consents to execute a supplemental indenture effecting some proposed changes to the notes, as already reported.

The company needed consents from holders of a majority in principal amount of the notes to eliminate substantially all of the restrictive covenants and event-of-default provisions in the note indenture, according to a previous press release.

The total purchase price was $1,050 per $1,000 principal amount of notes tendered by the consent date. The total payment included a $30 consent payment.

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

Holders who tendered their notes after the consent deadline would have received $1,020 per $1,000 of notes plus accrued interest.

According to a notice dated April 17, the company will redeem all $149,561,000 of the remaining 7¾% notes on June 1 at a price of 103.875 plus accrued interest.

In addition to receiving consents from a required majority, the offer was subject to a financing condition, the prior release noted.

BofA Merrill Lynch (888 292-0070 or collect 980 387-3907), J.P. Morgan Securities LLC, SunTrust Robinson Humphrey, Inc., Wells Fargo Securities LLC 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. is a Nashville-based owner and operator of privatized correctional and detention facilities.

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