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Corrections Corp. wraps tender for 6¼% notes, calls $277.47 million
By Susanna Moon
Chicago, Jan. 9 - Corrections Corp. of America said investors tendered $57,526,000 principal amount, or about 15.34%, of its $375 million outstanding principal amount of 6¼% senior notes due 2013 in the offer to purchase up to $150 million of the notes.
The tender offer expired at 11:59 p.m. ET on Jan. 5. As previously noted, the early tender deadline was extended to coincide with the offer expiration at 11:59 p.m. ET on Jan. 5. It was originally scheduled for 5 p.m. ET on Dec. 16.
The purchase price was $1,002.50 for each $1,000 principal amount of notes tendered, which included an early tender payment of $25.00.
The company accepted all the tendered notes for payment and said it will redeem $277,474,000 of the notes at par on Feb. 13 in amounts of $2,000 or an integral multiple of $1,000 in excess of that.
The company also will pay accrued interest to but not including the redemption date.
After the redemptions, there will be about $40 million principal amount of the notes outstanding.
The offer began Dec. 5 and was conditioned on the company or one of its affiliates entering into a new revolving credit facility for up to $750 million.
The company said on Jan. 9 that it expanded its senior credit facility $785 million from $450 million and extended the maturity through December 2016.
Proceeds will be used to redeem and repurchase $335 million of the notes.
The company said it also planned to use the proceeds from the facility to refinance debt under its existing facility and for general corporate purposes.
Wells Fargo Securities (866 309-6316 or 704 715-8341) is the dealer manager. D.F. King & Co., Inc. (800 488-8095 or 212 269-5550) is the information agent.
Corrections Corp. of America is a Nashville-based owner and operator of privatized correctional and detention facilities.
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