Chicago, Sept. 22 – CoreCivic, Inc. sold an upsized $225 million tap of 8¼% senior notes due 2026 (existing ratings Ba2/BB-) at 102.25 to yield 7 5/8%, according to an FWP filing with the Securities and Exchange Commission.
The add-on had been sized at $100 million initially with talk in the 102.5 area.
The notes will be combined with the $450 million of notes issued on April 14.
The notes will be callable with a make-whole premium of Treasuries plus 50 basis points before April 15, 2024. Starting in 2024, the notes will be callable at 104.125 and then after 2025 at par.
Imperial Capital is leading the public offer. StoneX Financial Inc. is the joint lead arranger. Wedbush Securities Inc. is the co-manager
The Brentwood, Tenn.-based operator of private, for-profit correctional institutions plans to use the proceeds for general corporate purposes which may include purchasing its 4 5/8% senior notes due 2023 and its 4¾% senior notes due 2027 in the open market or privately negotiated transactions, and/or repayment of revolver debt, a term loan A or a term loan B, which may subsequently be redrawn.
| Issuer: | CoreCivic, Inc.
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| Issue: | Senior notes
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| Amount: | $225 million
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| Maturity: | 2026
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| Left lead underwriter: | Imperial Capital
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| Joint lead arranger: | StoneX Financial Inc.
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| Co-manager: | Wedbush Securities Inc.
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| Coupon: | 8¼%
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| Price: | 102.25
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| Yield: | 7 5/8%
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| Call features: | Make-whole call at Treasuries plus 50 bps before April 15, 2024; starting April 15, 2024 at 104.125; from April 15, 2025 at par
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| Change of control: | At 101
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| Trade date: | Sept. 22
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| Settlement date: | Sept. 29
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| Ratings: | Moody’s: Ba2
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| S&P: BB-
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| Distribution: | SEC registered
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| Price talk: | 102.5
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| Cusip: | 21871NAB7
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